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The energy efficiency of the steel industry of China

Marc Ross and Liu Feng

Energy, 1991, vol. 16, issue 5, 833-848

Abstract: The Chinese iron and steel industry of 1987 is described in terms of energy consumption and production statistics and compared with the U.S. industry to clarify the major differences. The Chinese industry includes many plants which are extremely small by U.S. standards and use antiquated technology, but this segment is responsible for only 25% of steel production. The more modern key plants of the Chinese industry have an adjusted energy intensity just 20% higher than the U.S. average. The adjustment includes the effect of very large production of cast-iron products in China. Two other major characteristics of the Chinese industry which distinguish it from that of the U.S. are: (1) much lower use of scrap from sources external to the steel industry and (2) much less ambitious shaping and treating of final products. The use of scrap reduces overall energy intensity. The manufacture of more complex and higher quality products increases overall energy intensity. If the Chinese industry could take on the characteristics of the U.S. industry in these two respects, other things being equal, the overall energy intensity would remain about 20% higher. The reasons for this residual difference and the potential of new technology for the Chinese industry are briefly discussed.

Date: 1991
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:16:y:1991:i:5:p:833-848

DOI: 10.1016/0360-5442(91)90071-S

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