China Steel Mills Could Boost Profits With Green Push, CREA Says

A shift toward greener steel production could help China’s mills to restore profitability that’s been eroded by years of overcapacity and weak domestic demand, according to a think tank.

The sector could move from being at high financial risk to a more stable position by increasing its use of electric-arc furnace steelmaking to 20% by 2030, the Centre for Research on Energy and Clean Air said in a report on Tuesday. That would improve cost structures and overall margins, and could support a recovery of up to 220 billion yuan ($31.8 billion) in annual profits, researchers said in a separate email.