Australian PM Pushes China to Help Decarbonise Steel Production, Deal with Overcapacity

‘As both countries cooperate to advance decarbonisation, we also need to work together to address global excess steel capacity,’ Albanese said on July 14.

Australian mining magnate Andrew “Twiggy” Forrest and Prime Minister Anthony Albanese at a press conference after a Steel Decarbonisation Roundtable in Shanghai, China on July 12, 2025. AAP Image/Lukas Coch

Prime Minister Anthony Albanese has called on Chinese steelmakers to help decarbonise steel production, develop “green steel,” and address China’s overcapacity problem.

Compared to traditional efforts, “green steel” is supposed to be produced at lower or near-zero carbon emissions.

“Australia and China’s iron ore and steel sector partnership has contributed to both countries’ economic development for decades,” Albanese said on July 14 in the opening remarks of Steel Decarbonisation Roundtable, a high-level meeting between Australian iron ore producers and Chinese steelmakers.

The roundtable discussions included major industry CEOs such as BHP’s Geraldine Slattery, Fortescue’s Andrew Forrest, and Rio Tinto’s Kellie Parker.

In 2024, Australian iron ores and concentrates exports to China were valued at approximately $103.95 billion (US$69.3 billion)—the country’s largest export sector.

Iron ore comprised nearly 60 percent of Australia’s goods exports to China over the year to May 2024.