Shanghai is strictly prohibiting the addition of new steel production capacity in 2023, aiming to ensure that crude steel output only decreases and does not increase, as announced by Shanghai municipal government. Meanwhile, by 2030 the usage of scrap will increase to 30 percent, while it will be increased to 15 percent by 2025.
On the other hand, Shanghai will strictly control coal consumption. For instance, the total consumption of coal will decrease by five percent by 2025. At the same time, Baowu Group’s Shanghai production base will speed up the transformation from blast furnace steelmaking to electric arc furnace steelmaking production.
