Rising Ferrous Scrap Usage in World’s Crude Steel Output – BIR

Bureau of International Recycling (BIR) is organising World Recycling Convention & Exhibition in Barcelona, Spain spanning 27th-30 May’18. In Ferrous Division held today, BIR announced the publication of 9th edition of “World Steel Recycling in Figures”.

Key findings were as follows:

1. Increasing use of scrap in steelmaking world wide – Divisional Interim President – Mr. Tom Bird emphasised on the unexpected growth in China’s steel scrap usage last year – which was closely related to the closure of most of its induction furnaces – and the resulting statistical effects.

He added that we calculated an increase in the global use of steel scrap as a raw material for steelmaking in 2017. Besides this, our calculation model shows a relatively stable use of steel scrap in the world’s iron and steel foundries over recent years.

2. Use of scrap in iron & steel foundries – The model shows a relatively stable use of steel scrap in the world’s iron and steel foundries over recent years. Global annual ferrous scrap use in the world’s iron and steel foundries has been approximately 69 MnT over recent years.

3. Increase in crude steel output – Rolf Willeke, Statistical Advisor of the BIR Ferrous Division, summarised below the main news and findings contained in this report. World crude steel production increased by 3.9% last year to 1.69 BnT, according to worldsteel. It is interesting to note that the global increase in basic oxygen furnace production (+2.3% to 1.228 BnT) was bettered by the upturn in scrap-intensive electric furnace production (+8% to around 445 MnT).

4. China’s increased scrap consumption – According to official figures, steel scrap consumption grew in China last year to 147.9 MnT. During the preparation of BIR ninth edition, particularly through talks with our member federation CAMU, it was learned that this unexpected growth was closely related to China’s closure of induction furnaces last year, with most of this sector’s production and steel scrap consumption not included in official figures. Estimates indicate steel scrap use in the country’s induction furnaces could have amounted to around 60 MnT in 2016.

This large quantity of steel scrap was not incorporated in official figures for 2016 or in those for preceding years, and so no direct comparisons can be made with the figures for 2017. Most of this 60 MnT of steel scrap was used in 2017 by China’s basic oxygen furnace and electric furnace steel producers, thus explaining last year’s sharp increase in China’s official steel scrap usage.

China’s steel scrap exports were closely related to last year’s closure of domestic induction furnace capacity. According to our figures, China exported 2.230 MnT of steel scrap in 2017.

5. China’s EAF production to climb further – China’s electric furnace production is expected to climb over the coming years and further investments in steel scrap processing are planned, especially in shredder capacity.

6. Increasing global trades of scrap – According to Official Trade Statistics/WV Stahl, global external steel scrap trades (imports-exports) – including internal EU-28 trade – amounted to 99 MnT last year (+9.9% compared to 2016).


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *