A shift toward electric-arc furnace steelmaking could help China’s steel sector restore profitability eroded by overcapacity and weak demand, the Centre for Research on Energy and Clean Air said. Raising EAF usage to 20% by 2030 could improve margins and generate up to 220 billion yuan in annual profits. “The 15th Five-Year Plan provides a critical window,” said Xinyi Shen, adding the transition could also cut emissions by nearly 37% by 2035.

2026-03-31

A shift toward electric-arc furnace steelmaking could help China’s steel sector restore profitability eroded by overcapacity and weak demand, the Centre for Research on Energy and Clean Air said. Raising EAF usage to 20% by 2030 could improve margins and generate up to 220 billion yuan in annual profits. “The 15th Five-Year Plan provides a critical window,” said Xinyi Shen, adding the transition could also cut emissions by nearly 37% by 2035.