China’s overall steel scrap use is rising on demand from new electric arc furnaces, even as its blast furnace-based mills reduce scrap ratios to preserve profit margins. China Association of Metal Scrap Utilization said that China’s scrap use is expected to increase by 10% to 220 million tonne in 2018, with 187 million tonne of it used by steel mills and 15 million tonne by casting mills. The average ratio of the scrap charge in basic oxygen furnaces was 20.1% during January-September this year, with some mills as high as 34% and others still well below 10%
Other forecasts put China’s scrap use lower at around 190-200 million tonne in 2018 but still on an upwards trend. Scrap use should exceed 200 million tonne by 2020, according to China’s ministry of industry and information technology. New EAFs are the main driver to the increased demand.
China’s EAF steel output is expected to increase to 87 million tonne in 2020, or 12% of its total steel output, from 53 million tonne or 6% of the total in 2017, investment bank Goldman Sachs forecasts.
Source : ARGUS
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