China’s steel industry is young compared to Europe’s, and its transition to net zero may be slower as it takes a different path to reach government-mandated decarbonization goals, according to BHP Group Ltd.’s chief executive officer Mike Henry.
Steel making accounts for roughly 8% of global carbon dioxide emissions. China produces approximately 50% of the world’s steel, with a goal to replace 15% of its output with electric arc furnaces by 2025. “Given younger, less carbon intensive blast furnaces, and less scrap availability, Chinese steelmakers are understandably looking at continuing to use these assets rather than replacing them earlier than otherwise would be the case,” the top executive of the world’s biggest miner said.
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