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Macquarie on the rising use of Chinese steel scrap:
Increase scrap steel usage among Chinese steel mills
China has announced that all induction furnaces that make “ground steel” are to close by the end of June this year. We understand that 119mtpa of steelmaking capacity from those furnaces has been closed, with estimated production of 60mtpa. We have begun to see the impact of such closures in the Chinese steel market, including increased scrap steel usage in mills’ crude steel, higher scrap steel exports, tighter construction steel supply and a disconnect to the calculation of Chinese apparent steel consumption.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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