According to Mining News Pro - Since past few years ferrous scrap consumption in steel making is gradually increasing in the world. Especially for worlds` largest steel producer China, these figures are more highlighting. On stricter environmental regulations China’s scrap usage is on uptrend and is expected to increase further in upcoming days making it influencing dynamic for future steel making in the country.
According to reports provided by a source, China’s ferrous scrap consumption has inflated by 41% Y-o-Y in H1 2018. In the first half of 2018, the total consumption of ferrous scrap was 87.72 MnT, which was 25.48 MnT more than the same period of last year, an increase of 40.9% as against 62.3 MnT in H1 2017.
Chinese crude steel output likely to cross 900 MnT in 2018 - During first six months of CY18, China’s crude steel output was 451 MnT, an increase of 31.41 MnT, which was up 7.5% Y-o-Y as against 419.6 MnT in H1 2017. Based on the figure of previous six months, the crude steel output is expected reach 900 to 910 MnT for CY18.
China’s scrap exports fall significantly for 3rd successive month in Jul’18 - In 2017, China imported 2.32 MnT and exported 2.21 MnT of ferrous scrap. According to General Administration of Customs data, the country witnessed 3rd successive mammoth fall in monthly scrap exports in July. It exported just 1,639 MT ferrous scrap in Jul’18, down 77% M-o-M against 7,182 MT in Jun’18. While it had recorded drop of 91% M-o-M in Jun’18 as against 76,033 MT ferrous scrap in May’18.
Country observes major changes in scrap trading regulations - The main reason behind mammoth fall in scrap exports was that the General Administration of Customs delivered heavy punches this year to combat low-price customs declarations, tax evasion and illegal export of steel scrap.
In order to standardize the management of solid scrap imports, and to prevent, control and reduce environmental pollution, Chinese government is now ambitious about a complete ban on metal scrap imports by next 2-3 years and it has already banned 32 types of scrap imports in the country.
China’s ferrous scrap generation likely to reach 220 MnT in 2018 - In 2017, world’s 66 major countries and regions produced 1.67 billion tons of crude steel, an increase of 550 MnT Y-o-Y. China’s crude steel output was 830 MnT accounting for 49.7% of the world’s crude steel output, an increase of 23.36 MnT, or 2.9% Y-o-Y while global steel scrap consumption was 620 MnT.
According to CAMU, total of 148 MnT of steel scrap was consumed only in China, with an increase of 57.81 MnT which equals to 64.2% increase Y-o-Y. China’s steel scrap resources have increased now significantly. According to the forecast of the steel scrap association, the national scrap resource will be reaching 220 MnT in 2018 from 200 MnT in 2017, an increase of 10%.
Few reports pointed out that since imposition of the 13th Five-Year Plan, with the withdrawal of China’s medium frequency obsolete furnaces, the steel industry has shown steady and positive development. The ferrous scrap market has shown a rising trend in prices and the industry continues to gain development. The industry has entered into a major turning point and the large-scale use of steel scrap in China’s steel industry has entered a new era.
Average local scrap prices move up sharply on increasing local demand - For major eastern provinces in China, Average domestic scrap purchase prices for HMS (6mm-10mm) have increased sharply in last one month time on continuing production cuts. The average price was gauged at RMB 2327/MT in Q2, 2018 as against RMB 2055/MT in Q4, 2017. The monthly average price for Jul’18 month remained at RMB 2,375/MT as against RMB 2,350/MT in Jun’18. While prices have climbed sharply to RMB 2600-2700/MT levels in Aug`18.
