CHINA May 22 2017 2:39 PM
BEIJING (Scrap Register): Cheaper scrap prices proves to be an added advantage to the Chinese steel makers as, they have almost doubled the quotient of scrap usage in basic oxygen furnace to about 17.5 percent from 9 percent, as per China Baowu Steel Group.
There has been a cap of 20 percent in the technical limitation of scrap use in BOF's, which is a an advantage for the the steel makers as they can increase the use from a current industry wide average of around 15%.
The increase in scrap charge price to 15 percent from 9 percent is believed to result in an increase in the hot metal production of 42 million tons from the assumed output of 700 million tons per year.
The steel industry players are haunted that the companies will set up EAF's to take advantage of the extra scrap on the back of shutting down of induction furnace.