Chinese steel companies Xinyu Iron & Steel and Hangda Iron & Steel have seen progress with their electric arc furnace projects. In the context of the central government's strong call to reduce carbon emissions, the development of China's electric arc furnaces is expected to accelerate, Kallanish notes.

Xinyu Steel has started construction of its 100-tonne EAF project. The new mill will have a liquid steelmaking capacity of 1 million tonnes/year, as well as one four-rack, four-strand continuous billet caster, one six-rack, six-strand continuous billet caster, one high-end special bar line and one high-end special steel wire rod line. The project is expected to produce 960,000 t/y of finished steel.

Meanwhile, a 100t EAF at Sichuan Hangda Steel was fired up last week. The project includes a 100t ultra-high-power EAF, a 120t ladle furnace, a continuous billet caster and other facilities. After construction is completed, Hangda Steel will have an annual output of 1m t/y of crude steel and 950,000 t/y of high-strength bar (see Kallanish passim).

Since carbon emissions from EAFs are lower than from blast furnace steelmaking, the development of EAFs is being encouraged as part of China’s plans to decarbonise. However, not all EAFs meet national emissions standards, meaning some small units need to be upgraded. For example, Xinyu Steel is replacing two old 50t EAFs with a new EAF.

A contact familiar with the Chinese scrap market says this is the reason why many EAFs cannot operate or are not operating at full capacity. China will see more large-capacity EAFs commissioned in the coming years to meet its environmental targets.