SHANGHAI, Dec 21 (SMM) — This is a roundup of news in the steel industry for last week.
China's national standard of raw materials for secondary steel will be implemented in 2021
According to China Iron and Steel Association, the national standard of raw materials for secondary steel has been released recently and will be officially implemented on January 1 2021. This standard will maximise the exploitation of international and domestic raw material resources for secondary steel, so as to increase the recycling rate of iron resources, provide more effective options for steel enterprises, and curb the price increase and the consumption of iron ores to a certain extent.
Nanjing Iron and Steel Group plans to invest over $380 million to establish a steel plant in Indonesia
Nanjing Iron and Steel Group plans to invest $383.5 million to build its first steel plant in Indonesia with an annual production capacity of 2.6 million mt. This plant will include 4 furnace smelting facilities, which will take 18 months to complete construction. In order to speed up the construction of the factory, Nanjing Iron and Steel is working with Tsingshan Group in establishing a joint venture in which Nanjing Iron and Steel holds 78% of stake and Tsingshan holding 21%.
Xinjiang Bayi Iron and Steel broke global traditional blast furnace oxygen-enrichment limit
The blast oxygen content of oxygen blast furnace at Baosteel Xinjiang Bayi Iron and Steel (Bayi) has reached 35% in the first stage of industrial experiment, breaking the global traditional blast furnace oxygen enrichment limit.
On July 15, 2020, China's first oxygen blast furnace was put into operation Bayi, marking that China's low-carbon metallurgical process has entered the stage of industrialization testing. This oxygen blast furnace is rebuilt from the original 430 cubic meters traditional blast furnace of Bayi The industrial test of the oxygen blast furnace is divided into two stages. In the second stage, carbon dioxide removal technology will be introduced, which will take 3 to 4 months to open up the gas circulation process and achieve 50% ultra-high oxygen enrichment.
After the goal of the second phase is achieved, Bayi Iron and Steel will move towards achieving the full-oxygen enrichment smelting goal and actively promote hydrogen-enriched smelting.
High-speed railways to be built from Xiong’an New Area to Shangqiu, construction of the Hainan Free Trade Port to commence
China's National Development and Reform Commission (NDRC) has approved the proposal to build new high-speed railways from Xiong’an New Area to Shangqiu. The total investment in the construction is 82.71 billion yuan. On the other hand, China is also pushing forward theconstruction of the Hainan Free Trade Port. Recently, 2020's fifth batch of 75 major project contracts were signed in Hainan. At the same time, the implementation of zero tariff system in Hainan Free Trade Port is also speeding up. Following the release of the zero-tariff list of raw and auxiliary materials, three zero-tariff lists of self-produced equipment for enterprises, operation transportation, and consumer goods for residents will also be issued.
Spot supply of thermal coal “extremely tight” across domestic mines
Although the thermal coal futures prices have fallen by 100 yuan/mt from high, spot supply is still extremely tight in mines and ports. A coal trader said inventories at mines are currently at “very low levels” and the producers are unable to give valid quotations amid the volatility of coal prices. Hence, transaction prices are settled only on arrivals.
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