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China’s crude steel production will continue to get capped in 2022 and beyond, keeping annual output below 2021 levels, a development that comes despite a flexible timeline allowed for reaching peak carbon emissions, industry sources told S&P Global Platts. China’s Ministry of Industry and Information Technology in a guideline issued Feb. 7 made the timetable .
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China’s resumption of scrap imports seen unlikely to help costs, EAF development
China’s move to allow ferrous scrap imports to restart in January is likely to have a limited impact on domestic steelmaking costs, constrained by the lack of scrap available globally to import, market sources said Jan. 13.
While the more optimistic sources said scrap imports could reach 10 million mt/year in 2021 if domestic steel margins remain strong, others expected the volume would be well below 10 million mt as recovering overseas demand for scrap has pushed up seaborne scrap prices.
“Even if there is policy support, scrap imports won’t be too high as there is limited Asian scrap trade volumes,” an east coast-based steelmaker said.
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