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Steel & Metal
- China -

China’s Surge in Semi-Finished Steel Exports Raises Global Climate Concerns

In the first five months of 2025, China exported 4.71 million tons of semi-finished steel, a staggering 4.1-fold increase from the same period last year, reaching its highest level since 2007. May alone accounted for the entire five-month total, with exports rising 75% from April and 4.4 times year-on-year. Meanwhile, imports plummeted 67.4% to just over 361,000 tons between January and May, underscoring an increasing structural imbalance in the sector.

The export boom is largely driven by the low cost of Chinese semi-finished steel, produced predominantly using carbon-intensive blast furnace technology. While these exports are attractive to countries with limited steelmaking capacity, they come at a steep environmental cost.

The shift of carbon-heavy production abroad undermines global decarbonization efforts, particularly in regions striving to reduce emissions and implement “green” policies. Many importing countries claim environmental leadership while purchasing these cheaper, high-emission products—often exempt from carbon tariffs.

This loophole distorts global competition and erodes climate progress in the metallurgical sector. Although China’s overall steel production dropped 1.7% to 431.63 million tons during the period, exports reached a record 48.47 million tons, up 8.9% year-on-year, reflecting sustained foreign demand despite ongoing trade restrictions.

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