China's supply of steel scrap is surging as aged buildings, bridges and cars produced over decades of rapid economic growth are knocked down, dismantled or crushed.
Dam restrictions in China following excessive rains are also reducing hydropower capacity there, including at the world's biggest power station, forcing utilities to ramp up output at coal-fired utilities.
New report argues that a high-efficiency, low emissions coal-fired station would cost less than the almost A$3 billion in subsidies handed out by the government to renewable projects each year.
U.S. President Donald Trump's plan to restrict imports of steel and aluminium for national security reasons came under fire at the World Trade Organization on Friday, with China, the European Union, Brazil, Australia, Taiwan and Russia raising concerns.