China's Green Steel Transition and Its Impact on Australian Exports

In June 2022, Chinese authorities released a national climate adaptation strategy outlining plans to achieve carbon neutrality by 2060. The steel industry, responsible for approximately 17% of China's emissions, is a key focus. China is pursuing multiple approaches to decarbonize steel production, including reducing output, increasing scrap steel usage, and developing hydrogen-based technologies. These changes could significantly affect Australia, which supplies about 67% of China's iron ore imports. China is seeking alternative suppliers and establishing centralized purchasing to reduce reliance on Australian resources, while Australia may need to shift toward domestic green steel production.