Amid increasing consciousness towards environment, steel Industry is too emerging efficiently with new techniques in the process of steel production. After realizing the hazardous effects of CO2 emissions caused through the use of Induction Furnaces, the world is shifting towards the noble way, the greater use of electric arc furnaces for steel production.
Another advantage of using electric furnace is that it requires not only redundant scrap, but also pig iron as the feeding materials resulting in superior quality steel.
At the 2nd meeting of the IRRSG Automobile Recycling Summit 3 held in Japan on 5 Jul’17, Mr Ito gave a lecture entitled “Future of Electric Furnace in China Steel Surplus Era”, the lecture focused on increased benefits on usage of Electric arc furnaces.
China with changing phase in steel production
China’s crude steel production peaked at 800 mnt in CY14 and it exported more than 100 mnt of finished steel products in both CY15 and CY16.
However, the increasing Chinese steel export scenario has changed this year witnessing fall in finished steel export volumes against CY16.
To the contrast, in CY17, billet exports are likely to increase and are expected to remain around 20 mnt.
China’s scrap consumption to increase with closing down of substandard steel capacities
The ground steel (Ingot) made with a small induction furnace through use of scrap is found to be of poor quality and impacts highly on environment by causing highest CO emissions. 2
Realizing this danger, China has cut around 42 mnt substandard crude steel capacity on government orders during Jan-May’17.
Around 100 mnt of this inferior quality ground steel is produced illegally in China, although no statistical data is available.
In addition 40% customs duty is applied to Chinese scrap exports, owing to which Chinese scrap exports may not continue in the long run and will soon start using its local scrap with expanding EAF production.
Consequences on Japan
South Korea and Vietnam, the prime importers of Japanese Scrap are shifting towards the Chinese scrap and have recently imported scrap from China. Thus, Japan-prime exporter in the Asian region will aim at the full local consumption of scrap instead exporting to Asian regions.
This will further supplement the changes in Japan’s automobile and construction sectors and encourage the use of electric arc furnace for sheet and alloy parts.
One of the major steel producers in Japan – Tokyo Steel aims to reduce CO2 emissions up to 80% and resource recycling of scrap in its Tokyo Steel
Ecovision – 2050. This can be achieved by reducing CO2 levels via usage of electric arc furnaces. Tokyo Steel is Japan’s highest H beams producer, presently working with five plants in Japan (Tahara, okayama, kyushu, Utsunomiya,takamastu)
Thus, amid developments in new quality standards for every manufacturer, Clearly Major producers like China and Japan will start using domestic scrap supplemented to electric arc furnaces for future steel productions.
Rising Prices of Graphite Electrodes used in EAF route
There is a continuous increase in demand of graphite electrodes owing to demand-supply dynamics. Following which the prices of the electrode used in the electric furnace are witnessing increase and are anticipated to hike further. This will adversely impact the steelmakers using EAF route.
Source: Steel 360 Magazine Aug’17 Issue