Research on Carbon Emissions Reduction of Iron and Steel Remanufacturing Industry Supply Chain

Abstract

The steel industry occupies an important position in China's economic development, but it also consumes a lot of energy and produces CO2. Iron and steel remanufacturing can recycle scrap iron as raw materials for crude steel smelting and reduce energy consumption. However, different raw materials in the supply chain will result in different steel plants’ choice of supplier, purchase volume, and production volume. These choices will affect the economic cost and carbon emissions of the entire system. This paper establishes a model to simulate the economic cost and carbon emissions of the supply chain system. Under various constraints, the carbon emissions are set at 95% and 90% of the previous year's carbon emissions as constraints to solve the system’s impact on suppliers selection and processing distribution of steel plants. The results show that as carbon emission constraints become more stringent, steel plants will choose suppliers with better quality raw materials, and processing production will shift to steel plants with lower carbon emission factors. It is worth noting that with the strict carbon emission restrictions, at 90%, the economic cost will rise rapidly, so too strict carbon emission restrictions should be carefully considered.