Carbon path proposal for steel industry

First, we will strictly control production capacity. We will continue to reduce crude steel production capacity. On the one hand, we will continue to eliminate backward steel production capacity, revise industrial policies to tighten the bottom line, and gradually bring coke ovens 4.3 meters and below and blast furnaces 450 cubic meters and below into the elimination range. We will optimize the working mechanism and strictly prevent the resurgence of obsolete production capacity. On the other hand, strict control of new capacity, capacity reduction and substitution requirements, and strict control of repeated substitution. At the same time, improve the performance of steel products such as hot rolled steel pipe, prolong the service life. We will optimize policies for the import and export of steel products. By adjusting product export policies, we will reduce or cancel export tax rebates except for high-end products such as silicon steel, and import tariffs on some primary products such as pig iron, ferrochrome and direct reduced iron. We will appropriately raise export tariffs on pig iron, ferrochrome and other primary products, encourage imports and reduce exports, and relieve pressure on the growth of crude steel production.

Second, optimize the allocation of iron and steel process flow. Encourage short flow processes of square steel pipe. Preferential policies for electric furnace short-process steelmaking have been introduced, and policies have been preferential for electric furnace construction projects in the link of capacity replacement. Measures such as preferential electricity price, tax reduction and other measures should be adopted for steel pipe manufacturer, and the difference between the carbon emission trading quota and the long process should be fully considered in the allocation process. Accelerate the promotion and improvement of the scrap market, timely promotion of construction steel structures, and increase the total amount of scrap in the whole society. At the same time, the consumption field of scrap steel should be regulated, and the compliant use of scrap steel can be subsidized and encouraged.

Optimize long process. On the one hand, the proportion of blast-converter process should be strictly controlled. On the basis of capacity reduction substitution in construction projects, the preconditions for carbon emission reduction or doubling substitution should be increased. For hollow section manufacturers with high carbon emissions, they should raise their emission costs by raising electricity prices. On the other hand, the development of direct reduction, stable and reliable melting reduction and other non-blast furnace ironmaking processes with low carbon emissions are encouraged.