CHINESE metallurgist to give preference to scrap metal
In the next three years, Chinese steelmakers will increase the use of scrap in steel making, thus replacing the part purchased on import volumes of iron ore. This forecast was voiced Chun Chi Wai (Chun Chi Wai), the head of China Metal Recycling Holdings Ltd.
According to him, by 2015, the country#39;s steelmakers will smelt scrap about 20% of the steel produced in the country. Now the figure is 14%.
The share of China Metal Recycling Holdings on the scrap metal market of China is about 6%.
`The Chinese steel industry will never be released on double-digit growth - said Chung. - At the same time, Scrap fund in the country will increase, which will naturally lead to a reduction in demand for iron ore #39;.
According to him, in August steel prices in China have fallen to the lowest level since 2008, prompting the largest suppliers zhelrudy BHP Billiton and Vale defer capacity expansion projects, so China Metal Recycling expects to take their place in the market.
Chung also said that the production of steel from scrap is economically profitable. Thus, the construction Steel Plant, which would consume zhelrudu, is on the 2/3 more than the company with the production of steel-based metal.
