EU carbon tariffs force: the urgency of magnesium hydroxide desulfurization transformation in Chinese steel enterprises
1. Policy iron curtain: carbon tariffs reconstruct global steel trade rules
The EU Carbon Border Adjustment Mechanism (CBAM) is like a sword of Damocles hanging over the head of the Chinese steel industry. According to the latest EU policy, starting from 2026, steel exported from China to the EU will be subject to carbon tariffs based on the actual carbon emission difference, and the cost per ton of steel may surge by 42.8 euros. The average carbon emission intensity of Chinese steel enterprises is significantly higher than the EU benchmark. If the desulfurization transformation is not completed, export products will face an additional cost pressure of 15%-20%, which will directly devour the profit margin of enterprises.
The real case of a private steel plant in Hebei is very warning: before the transformation, its hot-rolled coils exported to the EU exceeded the carbon emission standard, and in 2026, it had to bear a carbon tariff of more than 10 million euros, equivalent to 60% of the annual profit. This cost pressure is forcing the industry to shift from passive compliance to active value creation.
2. Technical breakthrough: Dimension reduction advantage of magnesium hydroxide desulfurization
When traditional calcium desulfurization is stuck in the dilemma of solid waste treatment, magnesium hydroxide desulfurization technology has become the key to breakthrough with the dual value chain of "efficient desulfurization-resource recycling":
Reaction efficiency has increased: Through nano-level modification technology, the specific surface area of magnesium hydroxide has been increased to 15-20m²/g. After the transformation of a steel plant in Tangshan, the sulfur dioxide emission concentration has been stabilized below 20mg/m³, which is 30% lower than the EU standard;
By-product value-added: Every 1 ton of sulfur dioxide processed can produce 2.5 tons of magnesium sulfate heptahydrate. A base in Shandong processes it into a special building material with a purity of 99.5%, creating an additional income of 800 yuan per ton of product;
System cost subversion: A steel plant in Liaoning uses an intelligent spray control system, which reduces the consumption of reagents by 22%, saves more than 12 million yuan in annual operating costs, and shortens the investment recovery period of the transformation to 3.8 years.
The practice of Baowu Group's Zhanjiang base is more benchmarking: after the transformation, the carbon emission intensity per ton of steel dropped to 1.72 tons, which is not only lower than the EU benchmark, but also achieved an annual income of 230 million yuan through the sale of carbon quotas.
III. Transformation breakthrough: from pilot breakthrough to full industry coverage
Tangshan, a major steel town, has formed three typical transformation models:
EPC general contracting: Guoneng Group adopted an integrated model at the Caofeidian base, completing the transformation of 5.5 million tons of production capacity in 16 months, and the by-product magnesium sulfate was directly supplied to local fertilizer plants to form a regional circulation chain;
Carbon income betting: A private steel company in Handan signed a risk-sharing agreement with a third party, and 90% of the transformation costs were funded by the service provider, reducing carbon tariff expenditures by 38 million yuan in the first year;
Digital empowerment: Anshan Iron and Steel deployed a digital twin system to optimize the desulfurization tower parameters in real time through 6,000 IoT nodes, reducing unplanned downtime by 83%.
Strong support is formed at the policy level: the Ministry of Ecology and Environment includes magnesium desulfurization in the "Green Technology Promotion Catalogue", and transformation projects enjoy a 30% tax rebate on equipment investment; Shandong Province rewards enterprises that achieve ultra-low emissions with a 150 yuan reward per ton of SO₂ emission reduction.
IV. Carbon asset operation: from cost hole to profit source
The chemical reaction between the carbon market and desulfurization transformation releases amazing energy:
CCER trading: Shagang Group generates 350,000 tons of CCER indicators annually through transformation, and sells them at a price of 90 yuan/ton to cover 60% of the transformation cost;
Green certificate arbitrage: Shougang Jingtang supporting photovoltaic power station obtains 300,000 green certificates annually, each of which is sold to EU importers at a premium of 15 yuan, with an additional revenue of 4.5 million yuan;
Hydrogen energy value-added: Baosteel develops by-product electrolysis hydrogen production technology, consuming 20kg of magnesium sulfate for every 1kg of green hydrogen produced, and the project's internal rate of return is increased to 18.7%.
V. Future battlefield: Green competitiveness reshapes the global landscape
Enterprises that have completed the transformation will gain three advantages:
Cost moat: The carbon cost per ton of steel is 38 euros lower than that of untransformed enterprises, which directly translates into price competitiveness;
Market access threshold: EPD environmental product declaration certification allows products to be sold in the EU market, and the premium space is expanded to 12%-15%;
Technology export opportunities: The demand for transformation of steel mills in Southeast Asia has surged, and Chinese EPC companies have gone overseas with technology packages, with a single project profit margin of 25%-30%.
Conclusion: Desulfurization transformation under the carbon tariff storm is not a simple environmental investment, but a strategic choice that determines the survival of China's steel industry. Magnesium hydroxide technology brings not only the optimization of emission figures, but also the code for reconstructing global competitiveness. Those companies that complete the transformation before the 2026 deadline will occupy the commanding heights of the value chain in the new round of industrial reshuffles, and transform policy pressure into a strategic opportunity to lead the green industrial revolution.