China Ferrous Scrap Demand to Reach 80 million tonnes in 2010

Chinese ferrous scrap consumption will reach 80 million tonnes in 2010, according to China Metallurgical Industrial Planning and Research Institute. The consumption was 52.2 million tonnes in 2004. The raw steel output will increase to 420 million tonnes in 2010 from 349 million tonnes in 2005. The institute expects the scrap consumption at converters and electric furnaces will increase by around 60% from 2004 to 2010 and the higher scrap generation covers the higher demand. The steel industry consumed 21.1 million tonnes of scrap for converters and 31.1 million tonnes for electric furnaces in 2004. Other industry including metal fabrication and lighter industrial manufactures consumed 34.3 million tonnes of ferrous scrap in the country. The institute expects the better industrial structure results in shifting more than 10 million tonnes of scrap to steel making consumption. Steel makers’ internal scrap generation decreased to 6.9% in 2003 from 18.6% in 1995 when the continuous casting rate increased from 46.5% to 95.2% during the period. The institute expects with the peaked continuous casting rate, the internal scrap generation will be around 7% in 2010.