SHANGHAI, Nov 30 (SMM) — This is a roundup of news in the steel industry for last week.
HBIS to build the world's first direct reduction iron industrialized facility using hydrogen-rich gas
Tenova signed a contract with the HBIS Group to build a high-tech hydrogen energy development and utilization project, including an ENERGIRON direct reduction plant with an annual output of 600,000 mt.
The direct reduction plant will use a supplemental gas source with a hydrogen content of about 70%. Due to the high content of hydrogen, this plant will only produce 250 kilograms of carbon dioxide per mt of direct reduction iron, making it the world's greenest direct reduction plant. At the same time, the carbon dioxide produced will be selectively recovered and can be reused in downstream processes.
Therefore, the final net emissions from 1 mt of product are only about 125 kg of carbon dioxide. The plant is scheduled to commence production at the end of 2021.
China Baowu intends to acquire steel companies in Xinjiang within 3 years
Baowu Group Bayi Iron and Steel announced that Xinjiang Tianshan Iron and Steel United Co., Ltd., a controlling subsidiary of Xinjiang Bayi Iron and Steel, intends to acquire 77.13% stake in Xinjiang Yili Iron and Steel.
In response to China's supply-side reform, Baowu Group intends to integrate blast furnace steel plants in Xinjiang so as to effectively resolve the excess steel capacity in the region. Up to now, Tianshan Iron and Steel has signed an equity transfer agreement with Xinxing Ductile Iron Pipes (Xinjiang) and Yili Iron and Steel and completed acquisition of the two steel plants.
Solid wastes imports to be fully banned from January 2021
The Ministry of Ecological Environment (MEE), Ministry of Commerce, National Development Reform Commission, and General Administration of Customs jointly issued a notice about the full prohibition on the import of solid wastes. The notice states that any form of dumping, piling, or processing imported solid wastes will be banned from January 1, 2021.
MEE will stop dealing with the application of importing solid wastes as raw materials. According to SMM research, China’s relative departments are adjusting the import standard for steel scrap, planning to change the term “steel scrap” into “secondary steel materials”. Steel scrap import is unlikely to be impacted by the new prohibition.
Daily crude steel output in key steel plants averaged at 2.11 million mt in mid-November
As of mid-November, key steel plants produced 21.23 million mt of crude steel, 18.69 million mt of pig iron, 20.65 million mt of steel, and 3.23 million of coke in total. Average daily output of crude steel was 2.11 million mt, down 1.53% on the month but up 5.87% on the year, and daily output of steel was 2.06 million mt, up 2.51% on the month and 7.79% on the year.
Four coal mine projects in Xinjiang approved with a total of 4.06 billion yuan investment
Four coal mine projects in Xinjiang were approved by National Energy Administration, with investment totalling 4.06 billion yuan. These projects are located at Qiquan Lake mining area, Heshitoluogai mining area, Yangxia mining area and Yining mining area.
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