In the current economic scenario, which strongly promotes energy saving and recycling, increasing the scrap application level is important; nevertheless, for needing high yields from domestic businesses, this presents additional challenges. Consequently, there is still a need for a prolonged procedure in order to alter the state of poor use of scrap. At the moment, China’s steel industry transformation and upgrading of the two cores – green transformation and product upgrades – are directly related with the consumption of scrap. However, from the previous year to this year, domestic key steel enterprises of scrap consumption has dropped significantly. According to the statistics, China’s total use of steel scrap dropped by 21.7 kg from January through May of the previous year. Among them, the consumption of bof steel scrap reduced by 8.8 kg more than it did the previous year, while the consumption of eaf steel scrap decreased by 117.6 kg. In the meanwhile, China’s overall use of scrap is seeing a declining tendency as well. According to the figures, China’s use of scrap steel dropped by 700 million tons in 2012, from 9100 tons in 2011 to 84 million tons in 2012. This is a reduction of 700 million tons. In this respect, industry experts have said that the primary reason for this is that steel prices have maintained their downward trend, scrap costs are high, and the controllability of steel scrap is weak, among other issues. whereby the high cost of scrap, relative to the price of iron, is the primary factor contributing to the limited usage of scrap. On the international market, for instance, although iron ore prices experienced several price increases, which has been more than 100 dollars / ton of price, and 1.67 tons of iron ore can produce one ton of steel, but 1.67 tons of iron ore price is very low when compared with 400 dollars / ton of the price of scrap metal. In addition, iron ore’s thermal utilization and recovery can’t be overlooked, which, according to experts, makes it impossible to make up the difference in price with scrap metal. This is the case even when the energy expenses associated with creating steel from iron ore are taken into account. It is important to note that one of the primary reasons why the resultant domestic scrap ratio is not large is because low cost practices that are harmful to the environment. As a result of inadequate attention being paid to domestic environmental protection, the cost of unlawful activity is minimal, putting those who obey the law at a disadvantage. In contrast, due to the severe environmental system in foreign countries, scrap metal as an energy saving resource is more likely to be chosen than iron ore. This is because scrap metal is easier to recycle. Additionally, the high scrap import tariffs and the severe environmental protection system, also to some degree reduced the excitement of purchasers, which resulted in an inadequate supply of raw materials, and ultimately had to relinquish their dependence on scrap and switch to iron ore. Despite this, steel companies will prioritize the use of scrap iron due to the growing relevance of environmental protection on the national level as well as the growth in the amount of production. If you are looking for a provider of high-quality carbon steel pipe, erw steel pipe, or steel section in China, go no further than ontrend industrial limited. If you have any requirement, please do not hesitate to visit our website.
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