China and Australia Agree to Cooperate on Green Steel Amid Concerns Over Iron Ore Trade

Australian Prime Minister Anthony Albanese called for greater cooperation with China on green steel production, as the two countries' iron ore trade faces risks from decarbonization. Albanese offered to work with China to address excess steel capacity, while Australian miners discussed green iron projects with Chinese steelmakers. The iron ore trade is set to earn Canberra $68.90 billion this year, but decarbonization may require higher-grade iron ore from other countries.

Australian Prime Minister Anthony Albanese has called for greater cooperation with China on green steel production, as the two countries' iron ore trade faces risks from decarbonization. Speaking at a roundtable meeting with top Chinese steel industry leaders and Australian resources CEOs in Shanghai, Albanese emphasized the importance of a sustainable and market-driven global steel sector [1].

The meeting comes as Australia, the world's largest iron ore producer, grapples with the potential impacts of China's shift towards decarbonization. China, which has been a major importer of Australian iron ore, is aiming to reduce its greenhouse gas emissions and transition to cleaner energy sources. This shift could lead to a decrease in demand for traditional iron ore, posing a significant challenge for Australian miners [2].

Albanese highlighted the need for both countries to work together to address excess steel capacity and decarbonize the steel value chain. He noted that steelmaking contributes significantly to global emissions, and achieving the goals of the Paris Agreement will require substantial efforts in this area [3].

The roundtable discussion also touched on the potential for Australian miners to invest in green iron projects and collaborate with Chinese steelmakers to develop new technologies. Albanese emphasized the importance of enabling policy environments, extensive investments in research, and collaboration across academia, industry, and government to drive decarbonization efforts [1].

Despite the challenges posed by decarbonization, the iron ore trade is set to earn Canberra $68.90 billion this year, according to the latest figures. However, the increasing demand for higher-grade iron ore from other countries may require Australian miners to adapt and innovate [2].

Albanese's visit to China is part of a broader effort to stabilize and strengthen trade relations between the two countries. The prime minister has been working to remove trade barriers and promote cooperation in various sectors, including tourism and sports [4].

References:
[1] https://www.abc.net.au/news/2025-07-14/albanese-meetings-shanghai-china/105527608
[2] https://gmk.center/en/news/brazil-increased-iron-ore-exports-by-10-y-y-in-june/
[3] https://au.finance.yahoo.com/news/albo-flaunts-aussie-iron-amid-112814628.html
[4] https://www.newsmax.com/world/globaltalk/australia-albanese-china-visit-xi-trade/2025/07/13/id/1218624/