Chinese steel industry increases ferrous scrap use to improve resource efficiency and to reduce carbon dioxide emission when the accumulated steel stock reaches 10 billion tonnes in 2015. The industry establishes recycling system and improves technology both at recyclers and steel makers. China Iron and Steel Association (CISA) and China Association of Metal Scrap Utilization (CAMU) require tax incentive for recyclers. The industry tries to improve the competitiveness and sustainability through the better recycling.
CISA’s vice chairman Wang Xiaoqi and CAMU’s vice president Wang Zhenwu said on Thursday at 5th China International Metal Recycling Conference in Beijing. Mr. Wang Xiaoqi said Chinese electric furnace steel production is lower due to limited volume and lower grade of scrap supply. He said accumulated steel is already 5 billion tonnes in China but the supply couldn’t increase in large volume until 2015 due to limited recycling facilities including deposit and processing machine. He emphasized the investment is key for more scrap consumption. Mr. Wang Zhenwu said accumulated steel will reach 10 billion tonnes in 2015 and the supply increases to 200 million tonnes from 131.9 million tonnes in 2011. He said domestic raw steel output peaks at 800 million tonnes while scrap consumption per raw steel output increases from 2015. Chinese scrap consumption for steel making increased by 3.3% to 91 million tonnes in 2011 from 2010. The steel makers reduced the purchase from market by 4.2% to 50.8 million tonnes while the scrap from steel plants increased by 7.9% to 35.6 million tonnes and the import increased by 6.3% to 5.1 million tonnes. The scrap consumption decreased by 16.9% to 133 kilogram per 1 tonnes of raw steel output. CAMU tries to increases the scrap processing capacity during No.12 5-year plan through 2015. CAMU targets 100 more recyclers with more than 200,000 tonnes of annual treatment volume and 50% processing of total volume. CAMU encourages recycling by improving the quality through expenditure for cutting machine and magnetic separation machine.