News

As carbon neutrality becomes a global consensus, the steel industry—traditionally one of the most energy-intensive and carbon-heavy sectors—is undergoing a profound transformation. Major steel-producing countries are accelerating technological innovation, structural optimization, and green upgrades to tackle mounting resource constraints, environmental pressures, and market volatility. The future of global steelmaking is now being shaped by the twin engines of decarbonization and digitalization.

Key Challenges Facing the Global Steel Industry

1. Rising Pressure from Carbon Emissions and Environmental Compliance

Steel production is responsible for approximately 7% of global carbon emissions, making it a key target in national and international decarbonization efforts. Mechanisms such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and U.S. green procurement policies are placing direct pressure on traditional carbon-intensive processes.

2. Volatile Raw Material Prices and Supply Chain Disruptions

Iron ore and coking coal are unevenly distributed globally, and geopolitical tensions and logistics disruptions have increased price volatility. Meanwhile, the rising demand for scrap metal—driven by the growing adoption of electric arc furnace (EAF) technology—has exposed shortages in high-quality scrap supply.

3. High Energy Consumption and Efficiency Bottlenecks

Despite significant energy-saving efforts, global steelmaking still suffers from relatively low energy efficiency. Energy price surges, coupled with supply instability in developing regions, are squeezing production margins and threatening long-term sustainability.

4. Uneven Technological Development

Advanced economies such as Europe, Japan, and South Korea have largely adopted low-carbon, high-efficiency processes. In contrast, many developing nations still rely heavily on traditional blast furnace–basic oxygen furnace (BF-BOF) routes, with slow technological upgrades.