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Chinese Steel mills increase scrap usage during the first half of 2018

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BEIJING (Scrap Register): Steel mills in China increased usage of scrap during the first half of 2018, with big steelmakers boosting the ratio of scrap in their converters, according to the China Association of Metalscrap Utilization.

Chinese steelmakers used 87.72 million tonnes of scrap in H1 2018, with 180 million tonnes estimated for the whole of 2018. They used 148 million tonnes of scrap in 2017, up 64.2% from 2016. In 2017, 65% of scrap was used in converters while 35% was used in electric arc furnaces, the association said.

At the same time, Chinese steel mills added 19.4% of scrap as feedstock blendings in H1 2018, compared with 17.8% in 2017 and 6.6% in 2016.

There are more electric arc furnaces (EAFs) online this year which stimulated usage of scrap. In addition, the Chinese government placed a strict production control policy on steel producers this year to improve the environment, encouraging steel mills to add more scrap into converters to lower emissions, the association said.

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