“As an important ferritic raw material for the iron and steel industry, scrap iron and steel can be a large substitute for iron ore raw materials. It is an energy-saving renewable resource. Strengthening the comprehensive utilization of waste iron and steel is an important measure for the transformation and upgrading of the steel industry and green development. Promote the high-quality development of the scrap steel industry. “On November 28th, Li Li, inspector of the Energy Conservation and Comprehensive Utilization Department of the Ministry of Industry and Information Technology, pointed out at the 2019 National Scrap Iron and Steel Conference and the Eighth Session of the Sixth China Council of Scrap Iron and Steel Applications held in Fuzhou.
The conference was co-sponsored by the China Iron and Steel Application Association and Shanghai Steel Union E-Commerce Co., Ltd. Chi Jingdong, Vice President of China Iron and Steel Industry Association, Wang Xinjiang, Vice Chairman and Secretary-General of Chinese Society of Metals, Zheng Gaochun, Investigator of Energy Conservation and Comprehensive Utilization Division of Fujian Provincial Department of Industry and Information Technology, Zhu Lihong, Deputy General Manager of Dalian Commodity Exchange, Fujian Province Tang Ming, deputy general manager of Steel (Group) Co., Ltd., Su Jingfa, deputy general manager of Sambo Group Co., Ltd., and Gao Bo, president of Shanghai Steel Union Electronic Commerce Co., Ltd. attended the meeting and delivered speeches. Sun Jiansheng, secretary general of China Iron and Steel Application Association, presided over the morning meeting.
From relevant national ministries and commissions, industry organizations, major iron and steel enterprises, association directors, member units, scrap steel recycling access enterprises, equipment manufacturers that manufacture and process scrap steel, waste steel and metallurgical slag industry alliance members, and research institutes More than 1,000 representatives attended the meeting. The conference focused on a series of issues, including how to further promote the sound development of the scrap steel industry, implement relevant national preferential policies, solve the tax and environmental issues of scrap steel processing enterprises, and how to adapt the quality of scrap steel processing products to the application of new steel smelting technologies. To explore new ideas and measures for the high-quality development of the scrap steel industry from a new perspective.
Make good use of scrap steel
At the meeting, Chi Jingdong analyzed the development of China’s steel industry and pointed out that in the first 10 months of this year, the total profit of steel association member enterprises fell, and the sales profit rate fell 3.1% year-on-year, which is highly related to the excessive cost of imported iron ore. The purchase cost of raw materials has increased by more than 20%, which will affect the stable and sustainable development of the steel industry in the long run. It is estimated that the steel reserves will be 13 billion tons in 2025, of which construction steel accounts for about 55%, and the recycling cycle is more than 30 years, while the scrap recycling cycle of the automotive industry is short. Chi Jingdong said that accelerating the utilization of scrap steel will play a decisive role in the process change of the iron and steel industry, especially the short process process will have a fundamental change in the future. With the climax of scrapping appliances and automobiles, scrap steel will increase and resources will no longer be scarce.
Chi Jingdong believes that speeding up the recycling of scrap steel will change the way and layout of steel production. In the past, it was based on resources, and there were steel mills where there were iron ore. In the future, the development of electric furnace steel will focus on scrap steel as raw material and electricity as energy. On the one hand, the layout will change, and environmental capacity is an important consideration. In environmentally sensitive areas, electric furnace steelmaking has a market, and short processes will replace long processes. On the other hand, steelmaking methods will also change. Enterprise scale and product varieties Will rematch. Changes in processes, layouts, and production methods will greatly promote the use of low-carbon green functions in scrap steel. He emphasized that ultra-low emissions are end-of-line governance, not a fundamental solution. Accelerating the effective use of scrap steel is the only way for the low-carbon and green development of the steel industry.
Scrap resource structure changes, output will increase significantly
According to the statistics of the Scrap Steel Association, the total output of scrap steel resources in China in 2019 is 240 million tons, an increase of more than 20 million tons year-on-year, an increase of 9%. Among them, iron and steel enterprises produced 40 million tons of scrap steel themselves, accounting for 16.7% of the total resources; 200 million tons of socially purchased scrap steel, accounting for 83.3% of the total resources. Of this total 240 million tons of resources, steelmaking consumes 215 million tons of scrap steel, accounting for 89.6% of the total resources; the foundry industry consumes 18 million tons, accounting for 7.5% of the total resources; there are nearly 10 million tons of steel bars And crushed material is used to turn the molten iron into a blast furnace. From January to September this year, 180,000 tons of scrap was imported across the country, and the number of scrap imports from key steel companies counted by the Scrap Association was zero.
According to the above data analysis, Li Shubin, executive vice chairman of the China Iron and Steel Application Association, pointed out that the supply structure of social waste steel resources has changed fundamentally, and nearly 100 million tons of waste steel resources occupied by the original “strip steel” companies have been transferred to the formal mainstream steel industry. The supply structure and flow of the scrap steel market have been optimized, and scrap steel resources have been rationally used.
According to industry experts’ forecast, China’s waste steel output will exceed 300 million tons in 2030. In this regard, Li Li said that the rapid growth of waste steel resources will have an important impact on the iron and steel industry’s process structure, steel plant layout, resource consumption, energy consumption and carbon emissions. The Ministry of Industry and Information Technology attaches great importance to the comprehensive utilization of waste steel resources and actively promotes the healthy and sustainable development of the waste steel processing industry. Since 2012, the Ministry of Industry and Information Technology has announced six batches of a total of 252 scrap steel processing enterprises with a total processing capacity of more than 70 million tons. With the entry of the 7th approved enterprise, the total processing capacity of the regulated enterprise is expected to exceed 100 million tons.
There are still three aspects of the scrap industry that need attention
Although the amount of scrap steel resources is increasing rapidly, there are still many problems in resource utilization. Li Shubin summarized it into 3 aspects:
The first is the quality of scrap steel. At present, the quality inspection of scrap steel mainly relies on the visual inspection of staff, there is no third-party certification, and the lack of intelligent mechanized equipment testing, which is prone to quality objections and economic disputes. This requires steel companies and scrap steel recycling companies to strictly control the quality of scrap steel, strengthen the selection and classification of social waste steel, screen and sort high-alloy steel scrap, stainless steel scrap, and galvanized automobile sheet scrap, and sort them for storage. “Scrap steel, eat good scrap” to create conditions.
The second is environmental protection. With the implementation of the new national environmental protection tax law and the increase of environmental protection supervision, enterprises face great difficulties and challenges in production and operation. For example, the comprehensive utilization of metallurgical slag, especially converter and electric furnace steel tailings, is imminent. Some companies have been exposed by TV stations, and some companies have already paid a solid emission tax of 25 yuan / ton since April this year. At the same time, about 6 million tons of crushing line tailings need to be processed every year nationwide. Although it is not difficult to handle, it still needs to be handled in compliance.
The third is the issue of input tax invoices for waste goods transactions. Beginning in June 2016, the State Administration of Taxation has issued a document to routinely check the issue of off-site billing of waste goods in some provinces and cities. Many provinces and localities have adopted many measures, and the problem of difficulty in issuing tickets has been initially alleviated. However, there is no good solution to the input ticket problem, and the tax risk of enterprises still exists.
Promote the high-quality development of the scrap steel industry from various aspects
Regarding how to achieve the high-quality development of the scrap steel industry, Li Li pointed out that the Ministry of Industry and Information Technology will promote four aspects:
The first is to accelerate the optimization of industrial layout. Promote the integrated development of scrap steel recycling, dismantling, processing and distribution, promote in-depth cooperation between upstream and downstream of the industrial chain, encourage enterprises to carry out mergers and reorganizations, increase industrial concentration, and speed up the construction of a number of regional scrap steel processing and distribution centers, which are in line with the layout of steel companies adapt.
The second is to vigorously cultivate key enterprises. Strengthen the supervision of the announced enterprises, and establish a dynamic adjustment mechanism of entering and leaving. Promote iron and steel enterprises to lead the establishment of large-scale scrap processing and distribution enterprises, drive the green development of the entire industry chain, and guide the rational flow of waste steel resources.
The third is to improve the level of industrial technology. Accelerate the formulation of national and industry standards for waste steel processing, classification, quality control, testing and inspection, and energy saving of products and equipment. Improve the quality of scrap iron and steel materials, and implement standardized management for the entire process of purchasing, processing and utilizing scrap steel. Encourage the development and promotion of advanced equipment and processes, encourage green and intelligent development, and promote collaborative innovation in the industry chain.
The fourth is to actively implement support policies. Guidance and encouragement of social capital to increase support for the field of scrap steel. Strengthen communication and coordination with the finance, taxation and other departments, promote the implementation of the VAT refund and refund policy, further study industrial policies that are conducive to the large-scale and high-quality use of waste steel, and encourage steel companies to improve process technology and process structures. Increase the proportion of steelmaking in electric furnaces.
Regarding the future development of the scrap steel industry, Wang Xinjiang called for the rational formulation of policies to promote the development of the low-carbon scrap steel industry.
Yang Shangbao, the director of the Comprehensive Utilization Division of the National Development and Reform Commission’s Environment and Resources Department, also pointed out that the metallurgical industry is a comprehensive industry, so it is necessary to make more contacts with other industries (such as the chemical cement industry) to adapt to the market and the pace of social development. He proposed that in order to promote the development of the waste steel and metallurgical slag industry, in addition to innovation-driven and green development, we must also focus on promoting the improvement of raw materials and production processes through industry-standard-led methods, and we must face the market and work together from all walks of life, especially in the academia. Participate in the formulation of relevant policies with the business community. At the same time, enterprises should coordinate and self-discipline under the leadership of industry associations, play a role in policy formulation, and maintain a better industry development environment.
Post time: Dec-09-2019