LONDON, May 25, 2017 /PRNewswire/ --
China is taking action to remove low quality steel output, which is mostly produced by induction furnaces (IFs), by the end of June this year.
CRU recently published a Special Feature in the Metallics Market Outlook that analyses why IFs have been targeted and shows why these closures present an upside to hot metal production, albeit limited. CRU's baseline analysis suggests a complete clean up of the IF sector would result in a surplus 21 Mt of scrap that would need an increase in BOF and EAF scrap rates to consume. We see it as likely that this scrap will be consumed, but there is some limited upside for hot metal production.
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SOURCE CRU Insight