Shagang Steel Group, one of the largest ferrous scrap consumers based in Jiangsu province in China in its recently held annual meeting for year 2018 mentioned about its increasing demand for ferrous scrap.
According to updates on the meeting, Shagang Steel forecasts that its annual scrap purchase demand is likely to exceed 7 MnT in 2018.
According statistics reported by the company, in 2017 Shagang Steel’s domestic ferrous scrap purchases recorded at 5.72 MnT which has witnessed a total increase of 135% Y-o-Y. In 2016, Shagang Steel registered total scrap purchases of 2.43 MnT. Thus an increase of 3.31 MnT was recorded against purchases in 2016.
Shagang Steel is one of the leading steelmakers in China and has an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products.
During the peak period of development, compliance steel companies will face new opportunities for development. Shagang Steel commits a powerful guarantee for the realization of annual production and operation objectives of company. It also expects that future demand for high-strength steel and special steels will rise sharply. In future, Shagang will adhere to the transformation and upgrading, and will take the road of sustainable development, and constantly improve the level of organization along with the total purchase scrap resources.
Shagang Group’s party secretary, executive director of the Group Managing Board of Directors and Chairman, Mr. Bin Shen said regarding scrap acquisition that “In 2018, Shagang will continue to uphold the “integrity management, fair and just” concept of cooperation, further efforts to institution building process, and market and customer-focused, establish a sound analysis of the decision-making mechanism to serve as the core concept of innovation, use of information technology continues to improve reception scrap management level, to achieve high-quality enterprise development.”
Increasing China’s scrap consumption and EAF outputs –
According to a press release by Bureau of International Recycling (BIR), last year Chinese steel industry observed 64.2% leap in the scrap consumption which was recorded at 147.9 MnT, prompting a dramatic increase in the proportion of steel scrap used in the country’s steel production to 17.8%.
As per projected figures, scrap consumption in China likely to cross 180 MnT by 2020, 200 MnT by 2025 and 250 MnT by 2030, with surplus scrap availability at 25 MnT by 2020, 60 MnT by 2025 and 65 MnT by 2030. Thus amid oversupply of scrap, domestic scrap prices in China are expected to move down resulting in decline in EAF production cost. This situation can encourage increasing scrap exports from China and increasing number of EAF outputs in China.
~Inputs from China Metallurgical News Metallurgical Media
Leave a Reply