Posted on 11 Apr 2022
Steel scrap utilization in steelmaking among the 211 Chinese steel mills under Mysteel's monthly survey increased by 2.35 percentage points in March to reach 23.2% on average, according to the latest monthly survey charting scrap consumption among Chinese steelmakers. The survey samples integrated and electric-arc-furnace (EAF) steel producers, as well as those mills using both blast furnace and EAF technologies.
Last month, these 211 mills held 4.75 million tonnes of steel scrap in inventory, or lower by 648,200 tonnes or 12% on month, as Beijing's new value-added tax policy, plus the severe transportation disruptions as a consequence of measures to control the spread of COVID-19, slowed scrap deliveries to mills, Mysteel Global noted.
Despite the mills' declining stocks, their total steel scrap consumption during March increased by 411,200 tonnes on month to 2.78 million tonnes, the survey showed.
Steel scrap utilization among the 130 sampled blast furnace producers averaged 15.52% last month – equivalent to nearly 1.45 million tonnes of steel scrap in volume – which was higher by 0.47 percentage point or 98,200 tonnes compared with February.
On the other hand, steel scrap consumption among the 57 EAF mills increased by a large 3.34 percentage points to 95.58%, with the volume leaping by 128,300 tonnes to 720,300 tonnes.
The remaining 24 mills hosting both blast furnaces and EAFs used 612,800 tonnes of steel scrap to make their crude steel, the survey found. This was equivalent to a utilization rate of 31%, up 7.9 percentage points or by 184,700 on month.
Behind the increase in scrap use was the domestic steelmakers' eagerness to maintain normal production, encouraged by relatively stronger steel prices throughout last month, respondents noted.
As of April 1, Mysteel's steel scrap price index had increased by Yuan 194.9/tonne ($30.6/t) on month to Yuan 3,846.2/t, while China's national price of HRB400 20mm dia rebar had increased by as great a degree, jumping by a huge Yuan 280/t on month to reach Yuan 5,076/t, both including the 13% VAT, Mysteel's data shows.
Source:Mysteel Global
