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Using Waste Carbon Feedstocks to Produce Chemicals up from 1.73 million metric tons in 2017.119 Other than in 2008–09 and 2015, world crude steel production increased every year since 2000.120 Projections vary as to future growth of demand and production through the next 15–20 years but seem to indicate slowing growth. One expectation is that steel demand will only grow by 1.1 percent annually through 2035, reaching about 1.9 billion tons in 2035, which is below 2019 global production capacity of about 2.3 billion tons.121 Another source posits that crude steel production capacity will grow to 2.8 billion metric tons in 2030 and 3.1 billion metric tons in 2040 but adds that no new capacity is needed by 2040 if growth stays at or below 1.4 percent per year.122 Industry sources note the current oversupply situation for crude steel production capacity versus demand, particularly in China.123 Production Processes and Emissions The CO2 intensity of crude steel production varies because of several factors but production processes play a large role. The two predominant crude steel production processes are the integrated process, which primarily relies on blast furnace (BF)/basic oxygen furnace (BOF) technology to melt iron ore into molten iron for subsequent conversion into crude steel, and the electric arc furnace (EAF) process, which melts and converts scrap steel into crude steel.124 The BF/BOF process emits about 1.8–2 metric tons of CO2 for every metric ton of crude steel produced. In comparison, emissions from the EAF process are reportedly much lower than BF/BOF levels; one source quantifies them as being about 20 percent of BF/BOF levels.125 World Steel Association statistics indicate that steel mills using the BF/BOF process accounted for about 71 percent of total worldwide production in 2018 versus about 29 percent for the EAF process.126 Moreover the statistics indicate that usage also varies by country/region. In 2018, whereas EAF mills accounted for the majority of U.S. production of crude steel (about 68 percent), BF/BOF mills accounted for an estimated 88 percent of Chinese production. In the EU, the mix is relatively more even, with BF/BOF mills accounting for about 59 percent of production versus 42 percent for EAF mills.127 119 World Steel Association, “World Steel in Figures 2019,” 7. 120 World Steel Association, “World Steel in Figures 2019,” 7. 121 Lichtenstein, “Steeling for Disruption,” Accenture Strategy, 2017, 8. 122 King, “Trends in Investment in the Steel Industry,” presentation before the OECD Steel Committee, March 25, 2019. 123 Cardenas, Pedro, “Death of the Zombie Steel Firms and Reduction of Steel Excess Capacity in China,” Executive Briefing on Trade, U.S. International Trade Commission, November 2019; United States Trade Representative (USTR), “USTR Statement on Meeting of the Global Forum on Steel Excess Capacity,” October 26, 2019. 124 World Steel Association, “World Steel in Figures 2019,” 10; IEA, “Greenhouse Gas Emissions from Major industrial Sources,” September 2000, 1. 125 Global Efficiency Intelligence, “How Clean is the U.S. Steel Industry? An International Benchmarking of Energy and CO2 Intensities,” November 2019, 12; Ed Crooks, “Obama’s Greener Steel Plans Live on as Efficiency Drive,” Financial Times, March 14, 2018. 126 World Steel Association, “World Steel in Figures 2019,” 10. 127 World Steel Association, “World Steel in Figures 2019,” 10. United States International Trade Commission | 25PDF Image | Using Waste Carbon Feedstocks to Produce Chemicals
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