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Scrap to replace iron ore – scrap prices in China forecasted to boost

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by - 11/5/2012 10324 Views

China, the world’s biggest steel maker and steel consumer is about to start its restocking demand as destocking found this year is nearing an end.

China, the world’s biggest steel maker and steel consumer is about to start its restocking demand as destocking found this year is nearing an end. In addition, China planned to use more scraps on the contrary of iron ore in steel making in next three years.

The Global Steel industry emerges to be in a correction form.  Observers of scrap industry states ferrous scrap market won’t recover until the first quarter of 2013. No movement in finished steel sector or demand for steel seen so far kept the market stable for scrap.

WorldSteel forecasts China’s steel use to grow by 4 percent to 648.8 million metric tons in 2012 compared with 6.2 percent growth rate of steel usage in 2011.

According to Baosteel: China steel sector to improve slightly in fourth quarter, supported by restocking demand and also destocking found this year is approaching an end.

Conversely, China in steel making planned to use more scrap than iron ore in next 3 years. According to China Metal Recycling Holdings Ltd, China is like to enhance the use of scrap instead of iron ore in steel manufacturing in the next three years; this will definitely impose some pressure on iron ore prices.  Further, it is more energy and cost effective for the steel maker with at least more than two-thirds of cost economy than using iron ore for steel production to replace iron ore.

Category : Metal

Tags : scrap prices, scrap prices in China,


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About Benny Jebaraj

I have been with recycleinme.com for the past four years and enjoy working as the Administrator of the Scrap Prices section.  I am graduated as Master of Business Administration in Human resource management. Why I have chosen this course is because I’m very much fond of Business Administrati .... more info

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