SHANGHAI, Feb. 28 (SMM) – To coordinate work in eliminating low-steel capacities, five industry associations pushed forward the Suggestions on Supporting Elimination of Low-Steel Capacities, and Defining Using Scopes of Line and Intermediate Frequency Furnaces. The five associations include China Iron & Steel Association, the Chinese Society for Metals, China Foundry Association, China Special Steel Enterprises Association, and Stainless Steel Council of China Special Steel Enterprises Association. 

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Low-grade steel products are produced by intermediate frequency furnaces, but not all intermediate frequency furnaces are used to produce the low-grade steel products. The Suggestions clearly define which kinds of intermediate frequency furnaces will be eliminated, and which kinds of intermediate frequency furnaces will not be eliminated. 

First, induction furnace, employed by the foundry sector as melting facility to produce castings, will not be eliminated. Relevant governments should distinguish the kind of furnace used for the foundry sector from that for pig ingot and steel production by judging via production technology, facility, material and products. Those which use the kind of furnace to produce steel ingot (billet) and steel products in the name of producing castings must be forbidden.     

Second, intermediate frequency furnace and line frequency induction furnace, used for producing special alloys, will not be eliminated. The kind of furnaces is used to produce high-precision alloys and amorphous alloys by melting metalliferous materials via induction heating before the refining process.

Special steel enterprises, equipped with electroslag furnace or vacuum consumable melting furnace, manufacture special quality steel, high-temperature alloy, high-precision alloy, and corrosion resistant alloy by using cast alloy or forged billet, produced by the kind of furnaces as electrode before the remelting and refining process in electroslag furnace or vacuum consumable melting furnace. 

Those products are high-quality, with complete testing facilities, and demand for those products is relatively small, but those products are well known for their performance in high and low temperature resistance, and corrosion resistance. Those facilities must be used at steel mills qualified by scientific research institutions and provincial-ministerial level enterprise technology center. 

Third, intermediate frequency furnace and line frequency induction furnace, used for melting ferrochrome and ferronickel in the production process of stainless steel and high-alloy steel, will not be eliminated. 

During the production process of stainless steel and high-alloy steel, a large amount of ferrochrome and ferronickel need to be added. The kind of furnace is used to melt those alloys to liquid before being mixed into converter or electric arc furnace for steel making. A compete document ranging from purchase, production, operation to sales should be provided. The kind of furnace is only used as supporting facility in steel making, and should not be used as the furnace for steel ingot (billet) and steel products. Relevant governments should take strict measures when making judgment. 

Furnaces not covered by the three kinds of furnaces defined above should be eliminated, no matter big or small, old or new, equipped with steel liquid refining, continuous casting and steel rolling facilities or not, dust removal and other environmental protection facilities or not. Steel mills, having the kind of furnaces, must remove its melting unit, transformer, dust removal device, operation platform, and tracks. Steel mills, eligible for Standard Conditions for Iron and Steel Industry Standards and Conditions for Recognition of Foundry Pig Iron Enterprises, should be removed from the list if having those furnaces. Steel mills, having licenses for producing and selling steel ingot (billet) and steel products, should be deprived of having the qualifications.   

In accordance with the Suggestions and unit upgrading at most mills having intermediate frequency furnaces, SMM predicts lower-than-expected elimination of intermediate frequency furnaces.  

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