CHINA May 03 2017 3:27 PM
BEIJING (Scrap Register): The main reason for China's: Steel-intensive is believed to be US economy, with access to local/imported raw materials. That mature/stable industry has evolved over a century; scrap has contributed 50-70%.
China's blast-furnace dominated steel production mainly depends on scrap for 19 percent of its total iron unit requirements, which was up from 8 to 12 percent before 2010, when scrap usage increased from property and infrastructure rebuild in major cities.
As per the bank “Dumping this raw material of IF facilities into the open market (& ex-China) may be the more commercial/expeditious option for players of an industry undergoing an aggressive govt-led reform program”.
Though the global scrap market seems to be bearish, China's exports was seen a little motivation aside from crimping Southeast Asian demand for deepsea material.