China’s scrap exports hit a record high of several thousand fold in recent years

Recently, the reporter learned from China Iron and Steel Association that in 2017 China exported a total of 2,200,000 tons of scrap steel, while in 2016 it only exported about 1,000 tons, an increase of several thousand times over the same period of the previous year.

In 2017, China fully cleared the “ground steel” and shut down the intermediate frequency furnace. According to estimates by industry insiders, the affected scrap of about 7,000 to 80,000,000 tonnes does not have the original sales. The domestic steel mills are all full of scrapped vehicles, causing the scrap prices to fall short of oversupply. As a result, scrap exports are still largely exported and the blowout occurs despite export tariffs as high as 40%.

From the flow direction, the major exporters of scrap steel are Southeast Asian countries such as Indonesia, Thailand and Vietnam. The major export destinations are Guangdong, Jiangsu, Zhejiang, Fujian and Hainan.

Steel is divided into long process and short process two processes. Long process is based on molten iron, scrap, ferroalloy as the main raw material, completed in the converter steelmaking method, the use of scrap is only 10% to 30%. Short process, also known as EAF, 70% to 90% of the raw material is scrap.

It is understood that the current international mainly to short-range steelmaking, and our country is still a large number of long-range steelmaking method. Mainly higher electricity prices, iron ore prices continued to decline, making the short-run method of economic rather than long-run method.

According to the person in charge of the Ministry of Industry and Information Technology’s Raw Materials Industry Division, the centralized phase-out of “ground-level steel” in 2017 has resulted in a period of excess supply of scrap, although long-run enterprises have increased their scrap utilization. In order to meet the needs of the future development of the steel industry, we should promote the solution to the problems in the development of short-run steelmaking.

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Post time: Feb-22-2018
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