China Steel Body Seeks Speedy Change to Scrap Standards

Expanding EAF-based steelmaking, however, has been constrained by a shortage of domestic steel scrap.

SEATTLE (Scrap Monster): The government-backed China Iron and Steel Association (CISA) on Tuesday debated how to speed up the revision of standards for steel scrap to boost imports, the industry association said on its WeChat account on Wednesday.

China has said it will increase steel scrap use in steelmaking to try to reduce reliance on iron ore imports and also cut carbon dioxide emissions.

The world’s largest steel producer, with more than 70% of iron ore supply from abroad, has a target to reach peak carbon emissions by 2030 and carbon neutrality by 2060.

To help achieve those goals, Beijing aims to increase the share of steel from electric-arc furnace (EAF) that produce metal from scrap to over 15% of the country’s total by 2025, according to a plan issued by state planners in 2022 when the EAF share was 9.7%.

Every tonne of scrap used for steel production prevents the emission of 1.5 tonnes of carbon dioxide, as well as the consumption of 1.4 tonnes of iron ore, 740 kg of coal and 120 kg of limestone, a Worldsteel Association report said.

Expanding EAF-based steelmaking, however, has been constrained by a shortage of domestic steel scrap.

China lifted a ban on steel scrap imports in 2021, but it can still only enter the country under five customs codes.

Representatives from Dalian Commodity Exchange, China Association of Metal Scrap Utilization (CAMU) and some of China’s top steelmakers including China Baowu Steel Group, Ansteel, Shagang Group and HBIS Group attended Tuesday’s meeting, the CISA said in the statement.

Steel enterprises present ascribed the low import levels to stringent standards.

“Neighboring Vietnam and India imported much higher volumes of steel scrap than China. And we need to promptly revise the standards of steel scrap if we were to enlarge imports,” Luo Tiejun, the vice chairman of the CISA, said.

China imported around 550,000 tonnes of steel scrap in 2022, less than before the ban was introduced in 2019, customs data showed.

The meeting also discussed a draft steel scrap futures contract, the CISA said.

 Courtesy: www.hellenicshippingnews.com

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