China’s steel scrap usage at 230 mn t in 2021 – CAMU

China’s steelmakers are estimated to have consumed 230 million tonnes of steel scrap this year, with total steel scrap resources reaching 270 million tonnes, Feng Helin, the vice chairman of Association of Metalscrap Utilization (CAMU) disclosed at a steel scrap conference on December 28, according to a media report released on China Metallurgical News’ website on December 31.

According to Feng, over January-November, steel scrap consumption in all steelmaking processes totaled 204.07 million tonnes, up 5.82 million tonnes or 2.9% on year.

Over the same period, the consumption of composite steel scrap reached 215.94 kg per tonne of crude steel produced, higher by 9.4 kg per tonne or 4.5% on year. By end-use breakdown, steel scrap consumed in converters reached 162.96 kg per tonne of crude steel, up 7.2 kg per tonne or 4.6% on year, while scrap melted in electric-arc furnaces (EAFs) reached 647.92 kg per tonne of crude steel, down 7.1 kg per tonne or 1.1% on year.

Consequently, over this year’s first eleven months, the volume of crude steel made in all steelmaking processes from steel scrap accounted for 21.56% of the total national crude steel output over the period, up 0.94 percentage point on year. Within this total, crude steel output produced via EAFs accounted for 10.86%, up 0.74 percentage point on year.

Over January-November, China’s crude steel output totaled at 946.4 million tonnes, down 2.6% on year, according to the data released by the country’s National Bureau of Statistics.

CAMU statistics shared during the conference also showed that the total steel scrap consumption of 204.07 million tonnes in steelmaking process represented a reduction in carbon dioxide emissions of 326 million tonnes, a cut in standard coal consumption of 71 million tonnes, and saved 347 million tonnes of fresh water.

Feng also pointed out that compared with the increase in domestic steel scrap consumption, China’s scrap imports are still at a low level, with the total imported during this year’s first eleven months reaching only 526,589 tonnes.

Behind the low import volume are two main factors, Feng was quoted as saying, with one being the surge commodity prices worldwide, which together with the 13% VAT in China, meant that bringing in overseas scrap made no profit for importers. The other inhibitor is the fact that the tougher quality standards the central government now requires imported scrap to meet have dampened some traders’ willingness to operate steel scrap import-related business.

Written by Victoria Zou, zyongjia@mysteel.com
This article has been published under an exchange agreement between MySteel Global and SteelMint.