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On January 13, 2013, Xiaonong, inspector of the Industry Coordination Department of the National Development and Reform Commission, said at the 2018 council of the China Steel Association (enlarged) that 2018 will be the year to resolve the overcapacity of steel. The focus will include preventing the "reworking steel" from resurging and resolving Excess capacity, such as complex production. When interviewed by the Shanghai Securities News reporter, Qiu Yuecheng, chief researcher of the West Shinkansen, said that as the "strip steel" was completely rectified last year, the new electric furnace and the "middle electric furnace" (electric furnace to electric furnace) wave will drive the growth in scrap demand. Metal titanium brush product manufacturer
According to incomplete statistics, there are currently 249 electric arc furnaces in the country, involving 124 million tons of capacity. By the end of December 2017, the capacity utilization rate has increased by 26 percentage points from the first ten days of May of the same year. Long-term steel plant arc furnace production is more common. Up to now, the capacity of long-life steelmaking electric arc furnaces re-produced during the year has accumulated about 9.6 million tons, contributing about 4 million to 5 million tons of output.
According to Qiuyue Cheng introduced, as of November 2017, intends to "change the power" reached 96 companies, to be about 145 electric furnace, 48 under construction. According to each production capacity of 500,000 tons estimates, in 2018 will be put into operation around 24 million tons. These electric furnaces are mainly concentrated in Southwest, Central China and East China. The capacity of electric furnaces newly put into operation is mainly replaced by capacity.Brass CNC Turning Parts OEM&ODM
Recently, the Ministry of Industry and Information Technology released the newly revised Measures for the Implementation of Capacity Replacement in the Iron and Steel Industry. It stipulated that projects within the iron and steel enterprises that have withdrawn from the converter to construct electric furnaces could be replaced in equal quantities. When they quit the converter, they must also exit such facilities as sintering, coke ovens and blast furnaces . Prior to the replacement of production capacity did not mention electric stove.
After the end of environmental protection in March of this year, the steel industry people expect that the re-production of electric arc furnace and new production will drive the demand for scrap. Due to the higher profit per ton of steel or the long-term consumption of steel mills continue to provide the conditions for a high proportion of the industry generally bullish on the trend of this year's scrap prices. In 2018, the output of electric furnace steel will also see substantial growth as a whole.
In the long run, there is a big advantage of energy saving and emission reduction in scrap steelmaking relative to iron ore making. Under the strong environmental protection policy, short-range steelmaking has obvious advantages. At present, the proportion of China's electric furnace steel is 7%, which is far below the level of 40% to 50% in other countries and has huge space for development.Zinc Alloy CNC Milling Parts OEM&ODM
According to the relevant agencies, China's scrap resources will reach 280 million tons by 2025 and 330 million tons by 2030. Huge scrap resources inevitably forced the steel industry to scrap steel as the main raw material.