China's mixed signals about its decarbonization goals have raised doubts over the country's purported plans to cut steel production in the second half of 2021, market sources said.
The central Chinese government had asked steelmakers to reduce steel output in the second half for two reasons.
The first is the short-term target of keeping the country's total steel output for this year from exceeding last year's. The second has to do with China's long-term goal of having carbon emissions peak in 2030 and for the country to achieve carbon neutrality by 2060.
But on Friday July 30, the Chinese Communist Party's Political Bureau issued a statement that there had been an overreaction toward the country's drive for decarbonization, which made it difficult to reduce emissions at an optimal rate that would not affect economic development.
It called for an end to localized "campaign-style" decarbonization efforts and urged that orderly and scientific methods be applied instead.
"Local governments, industries and enterprises should set reasonable goals that take into account a balance between development and...