SMM News: "the development of the scrap iron and steel industry needs to gather forces from all walks of life, integrate the resources of all parties, and the industry needs the joint efforts of all walks of life in green and sustainable development. We will continue to hold high the green banner, innovate our work ideas, and strengthen opening up and cooperation. In order to promote the green development of scrap iron and steel industry, improve the development level of green industry, make new contributions. " At the sixth fourth General meeting and the sixth Seventh Council meeting of the China scrap Iron and Steel Application Association held in Zhuhai from April 25 to 26, as well as the 12th International Symposium on Metal Recycling Application in China, Li, inspector of the Department of Energy Saving and Comprehensive Utilization of the Ministry of Industry and Information Technology, pointed out in his speech that waste iron and steel, as an important raw material for iron and steel production, has good resource and environmental benefits, and vigorously promotes the efficient recycling of waste iron and steel. It is not only the inherent demand for the transformation and upgrading and green development of the iron and steel industry itself, but also an effective way to alleviate the constraints of resources and environment.
Scrap resources and consumption continue to increase steadily
In 2018, the output of pig iron in China was 771 million tons, an increase of 3 per cent over the same period last year, and the output of crude steel was 928 million tons, an increase of 6.6 per cent over the same period last year. The total consumption of scrap iron and steel for the whole year was 188 million tons, an increase of 39.68 million tons, or 26.9 per cent, over the same period last year. The unit consumption of scrap steel was 202.3 kg / ton, an increase of 24.5 kg / ton, or 13.8 per cent, compared with the same period last year. Among them, the unit consumption of converter scrap steel was 152kg / ton, an increase of 18.6% over the same period last year, and the unit consumption of electric furnace scrap steel was 662.8 kg / ton, an increase of 2.2kg / ton, an increase of 0.3 per cent. The scrap ratio was 20.2%, an increase of 2.45 percentage points over the same period last year, and the EAF steel ratio was 9.8%, an increase of 0.5 percentage points over the same period last year.
In the first two months of this year, the total consumption of scrap iron and steel in the country was 29.33 million tons, an increase of 3.97 million tons, or 15.6 per cent, over the same period last year. The unit consumption of scrap steel was 196.1 kg / ton, an increase of 10.8kg / ton over the same period last year, an increase of 5.8 per cent. Among them, the unit consumption of converter scrap steel was 153kg / ton, an increase of 16.3kg / ton compared with the same period last year, an increase of 11.9%, and the unit consumption of electric furnace scrap was 604.4 kg / ton, down 23.2kg / ton from the same period last year, a decrease of 3.7%. The scrap ratio was 19.6%, an increase of 1.1 percentage points over the same period last year, and the EAF steel ratio was 9.5%, down 0.4 percentage points from the same period last year.
Li Shubin, executive vice president and secretary general of the China scrap Iron and Steel Application Association, analyzed and pointed out that the above data show that a new breakthrough has been made in the utilization of scrap iron and steel resources in China. The expected target of 20% scrap steel ratio set out in the 13th five-year Plan for scrap Iron and Steel Industry was completed two years and three months ahead of schedule. Not only that, the total consumption of scrap iron and steel, the comprehensive unit consumption of scrap iron and steel and the application ratio of scrap steel all reach the best level in the history of China's iron and steel industry after the removal of large open hearth smelting process. It also marks that the development of scrap iron and steel industry in China has entered a new and important turning point.
According to the statistics of the scrap Steel Association, the total amount of scrap iron and steel resources produced in 2018 was 220 million tons, an increase of more than 20 million tons over the same period last year, an increase of 10 percent. Iron and steel enterprises produce 50 million tons of scrap steel, accounting for 23 percent of the total resources, and social procurement of 170 million tons of scrap steel, accounting for 77 percent of the total resources. Among them, the total consumption of scrap steel in iron and steel enterprises is 188 million tons, accounting for 85.5% of the total resources; the consumption of foundry enterprises is 15 million tons, accounting for 6.8% of the total resources; and the inventory is 10 million tons, accounting for 4.5% of the total resources.
Li Shubin also pointed out the problems existing in the recycling of waste iron and steel: first, the recycling of waste iron and steel in China is still relatively low compared with the global average level. Second, at present, the national policies and measures for the utilization of green resources scrap steel making and short process steelmaking need to be further strengthened. Third, the preferential policy of fiscal and taxation  78 for scrap iron and steel entry enterprises has not been fully realized.
With regard to the gap between China's scrap ratio and the global average level, Zhao Xizi, former deputy director of the State Metallurgical Administration and honorary president of the all-Union Metallurgical Chamber of Commerce, pointed out at the meeting that because of the pressure of the situation, it is necessary to speed up the increase of scrap ratio and electric furnace ratio. In order to promote the accelerated development of China's scrap iron and steel application industry.
With regard to the problem that the relevant fiscal and taxation policies have not been fully implemented, Li said that he will make full use of existing funding channels such as green manufacturing to guide and encourage social capital to increase support for scrap steel applications. And will strengthen communication and coordination with financial, tax and other departments to promote the implementation of value-added tax rebate and other policies on the ground, to ensure that qualified announcement enterprises to enjoy tax concessions.
There will be no big fluctuations in the scrap steel market
As for the market performance of rising scrap prices after falling twice in 2018, Li Shubin pointed out that whether there will be large fluctuations in prices has always been the focus of concern in the industry. The second pullback last year coincided with the Chengdu scrap Iron and Steel Conference, where delegates worried that prices would fluctuate greatly. In this regard, the scrap Association Secretariat held a forum, and conducted market research to seek the views of some industry experts and relevant websites. The analysis shows that the price level of scrap steel market in 2019 should fluctuate around 2500 yuan / ton (including tax price), and there will be no big decline, let alone a cliff decline in 2015. The Marketing Department of the China Iron and Steel Association predicts that steel prices will rise to a certain extent in April and May compared with the end of last year, and scrap steel prices will not fall significantly.
With regard to the trend of scrap steel prices in 2019, Li Shubin believes that scrap steel prices are linked to steel prices and related to the cost of hot metal. As long as steel prices are strong and iron and steel enterprises have huge profits, the demand for scrap steel will not be greatly reduced. Scrap prices will not fall sharply, but there will not be a big rise, heavy scrap in 2500 yuan / ton floating is reasonable. At present, an outstanding problem faced by EAF steel production enterprises is that the scrap price is on the high side, resulting in the cost of EAF steel with short process being more than 500 yuan / ton higher than that of converter steel with long process (the current high electricity price is also a major factor). As a result, the ratio of waste steel to steel in electric furnace and the ratio of steel to steel in electric furnace are decreasing.
Scrap processing and Distribution Enterprises face two opportunities
Li Shubin said: the scrap Steel Association is comprehensively promoting the process of industrialization, production, scale, and regionalization of scrap iron and steel. We will strive to create an industrial system for the integrated development of scrap steel recovery, disassembly, processing, distribution and application in line with the development of the iron and steel industry throughout the country, so as to create conditions for iron and steel enterprises to eat more scrap steel products into the furnace. Only in this way can more than 100,000 scrap recycling enterprises in society be liberated from the uneven and messy environment. At present, there are two major opportunities, the first is that the Ministry of Industry and Information Technology's seventh batch of scrap steel access is about to begin; the other is that the relevant regulations on scrapped automobile dismantling will be issued soon, which will help to realize the integrated development of scrap industry.
At the same time, he called for waste steel recycling processing and distribution application of every link and every process should reflect green environmental protection. Broken line equipment whether manufacturers and production enterprises, environmental protection is not matching, dust removal is not up to standard, can not leave the factory and can not be put into production. Scrap iron and steel recovery and processing enterprises should do everything possible to reduce flame cutting to prevent pollution and make full use of modern energy-saving and environmental protection equipment to process scrap steel. The waste produced by the crushing production line is to be sorted, the second is to be covered, and the third is to deal with the external discharge in accordance with the requirements. "the boss of scrap steel recycling and processing enterprises should put environmental protection in the first place and take practical actions to contribute to winning the blue sky defense war."
At the same time, he reminded that the scrap steel industry is also facing a transformation and upgrading, through the study and implementation of national and industry standards, efforts should be made to solve the problem of disorderly and poor quality of scrap resources.
The application of scrap steel should be carried out step by step, and great efforts should be made to cultivate backbone processing and distribution enterprises.
With regard to the situation of scrap steel resources and the development trend of electric furnaces in the future, Yin Ruiyu, former vice minister of metallurgy and academician of the Chinese Academy of Engineering, pointed out that scrap iron and steel is the main indispensable raw material for iron and steel in the modern iron and steel industry. It is also the only raw material that can replace iron ore in large quantities, and it is a renewable resource that can save energy and carry energy. With the rapid increase of iron and steel storage in China, the amount of scrap iron and steel resources will increase greatly. In the next 20 years, China's scrap iron and steel resources will grow rapidly, and will have an important impact on the process structure of the iron and steel industry, steel plant model, steel plant layout, iron resource consumption, energy consumption and carbon emissions. And then it will contribute to the greening of society and ecological harmony.
With regard to the development of electric furnaces, Wang Tianyi, director of the expert Committee of the Chinese Metal Society, pointed out that we should proceed from the actual situation in China, gradually develop electric furnaces, and build green steel mills with a combination of long and short processes. China's long-process steel plants have great capacity, and can gradually update and build electric furnaces, which can not only make full use of the original equipment, but also greatly reduce emissions and alleviate the pressure of environmental protection.
Li said that the relevant departments will vigorously cultivate the backbone of scrap processing and distribution enterprises. He pointed out: according to the "conditions for admission to the scrap Iron and Steel processing Industry," at present, China has issued six batches of a total of 252 scrap iron and steel standard enterprises with a processing capacity of more than 70 million tons, while steadily increasing the scrap processing capacity. It has also effectively led to the continuous improvement of the overall level of the industry. In particular, through the post-event management of the announced enterprises, a dynamic adjustment mechanism with entry and exit has been established. "scrap steel processing enterprises are encouraged to develop on a large scale and in groups through merger and reorganization, and support iron and steel enterprises to take the lead in setting up large-scale scrap steel processing and distribution enterprises, promote the green development of upstream and downstream industrial chains, and guide the rational flow of scrap iron and steel resources." Li finally stressed.
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