On strengthening stricter environmental regulations, China’s scrap usage has achieved new breakthroughs. The goal of 20% resource consumption proposed by 13th Five-Year Plan for China scrap industry was completed two years and three months ahead of schedule.
China’s scrap consumption and generation both on an uptrend – According to China Association of Metal Scrap Utilization (CAMU) reports, China’s ferrous scrap consumption has inflated by 39% Y-o-Y during Jan-Sept’18.
In the first three quarters of 2018, the total consumption of ferrous scrap recorded at 141 MnT, which was 39.39 MnT more than the consumption recorded during the same period of last year. It is predicted that total scrap consumption in 2018 may reach 187 MnT.
According to the prediction of CAMU, China’s scrap resources generation will reach 220 MnT in 2018, with an increase of 20 MnT and up 10% on a yearly basis. Generation by steel enterprises will come to 40 MnT of scrap, accounting for 18% of total resources. Social collection may total 180 MnT, 82% of the total. Of this, steel enterprises likely to consume 187 MnT of scrap, and foundry enterprise likely to consume 15 MnT. Scrap inventories will reach 10 MnT.
China’s crude steel output likely to cross 900 MnT in 2018 – Chinese crude steel output rose by 6% to 699.42 MnT in Jan-Sep’18 which was 659.42 MnT in same time frame of previous year. Amid strong domestic demand and high prices, China’s crude steel output has witnessed increase this year.
China’s scrap ratio in steel-making was 11.5% in 12th Five Years, and that in the first nine months of this year reached 20.1%. Scrap ratio of major steel enterprises was 20%-34%, while that of small scale companies was only 10%-12%.
China’s scrap exports plunge after H1 2018 – The country exported 0.34 MnT ferrous scrap during Jan-Sept’18 with sharp fall by 1.05 MnT on a yearly basis as against 1.39 MnT exports during Jan-Sept’17.
Average local scrap prices continued uptrend – Influenced by unilateral trade friction by US, scrap prices in China remain strong in CY18. For major eastern provinces in China, average domestic scrap purchase prices for HMS (6mm-10mm) gauged at RMB 2550/MT in Q3,CY18 as against 2327/MT in Q2,CY18. The monthly average price for Oct’18 month stood at RMB 2,755/MT as against RMB 2,652/MT in Sept’18.
~ Inputs from Steel Home
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