Posted on 12 Oct 2012
It is reported that China Metal Recycling Holdings Ltd., China's largest scrap dealer commented in an interview that China is like to enhance the use of scrap instead of iron ore in steel manufacturing in the next three years, thanks to more recycled material becomes available.
Accordingly, it will definitely impose some pressure on iron ore prices.
It is analyzed that scrap used for steel production to replace iron ore is more energy and cost effective for the steelmakers with cost saving at least two-thirds more than one using iron ore.
Also, it is estimated that the usage of scrap in steel production may account for more than 20% of in China by 2015, from 14% this year.
