Overview

 

China is by far the world’s largest producer of steel, and the destination for a little over 80% of Australian iron ore. It is therefore imperative to understand the impact of China’s transition to green steel making, since the competitiveness of current Australian ore exports is largely based on its suitability for use in Chinese blast furnaces. Much recent research has focused on the suitability and value in use of Australian iron ores in green steel production routes, with early results on the relative competitiveness of hematite versus magnetite ores. Such assessments typically include no or highly simplified considerations of transport costs and constraints, whilst these matter greatly for the cost delivered of the final products. They also typically compare scenarios where Australia exports either green iron or steel, or where China continues to import iron ore for processing domestically. There is limited analysis of scenarios where Australia would export partially processed product, whilst these may provide cost effective and politically feasible pathways to decarbonisation.