Steel sector undergoing structural adjustments

China's steel companies are increasingly embracing greener and higher-quality practices, driven by the rapidly growing demand for low-carbon products from downstream industries like electric vehicles, said experts.

The shift is also propelled by increased global demand for lower carbon footprints, exemplified by the impending inclusion of the steel industry in China's carbon market and the European Union's Carbon Border Adjustment Mechanism.

"As the steel industry gears up to enter the domestic carbon trading market, there will be growing demand for environmentally friendly steel products in the near future to avoid extra payment charged from emissions. The move also helps steel companies to better integrate into the global market as more economies are starting to place a price on emissions," Guan Zhijie, deputy chief engineer of the China Metallurgical Industry Planning and Research Institute, said.