Chinese Prime Minister Li Keqiang has pledged to maintain a "relentless" drive to halt induction furnace-based steel mills, boosting the country's steel and iron ore markets. The most active iron ore contract on the Dalian Commodity Exchange rose 8% today, while the most active rebar contract rose 4.7%.
The continued suppression of steel power consumed by scrap metal will delay the supply of rebar and wire rod. These are products that are in strong demand from the reliable real estate and construction markets in China. Therefore, export of scrap metal from China is gaining more and more popularity among neighboring countries.
According to Li, Beijing will oppose any attempts to resurrect the production of induction furnaces. Companies that try to evade will suffer brutal punishments, he said, while government agencies in charge of oversight will be held accountable.
China claims that as of June 30, China has liquidated 120 million tonnes /year of an induction furnace using scrap metal. These factories produced non-standard products and emitted more pollution than blast furnaces.
Li's statement comes after inspections overseen by a powerful state council found two companies in Tianjin province and one in Hunan province used to produce scrap metal despite a ban on such production.
China promises complete rejection of scrap metal
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Azovpromstal® 2 August 2017 г. 10:35 |
