China encouraging electric arc furnace capacity expansion?

Jan 12 05:01 2018 Print This Article

Monday’s release by China’s Ministry of Industry and Information Technology of revised steel capacity replacement measures has sparked market debate about MIIT’s real intentions regarding electric arc furnaces.

Some pundits Tuesday were adamant the new rules encourage the replacement of converters with EAFs and would result in net EAF steel capacity expanding.

MIIT’s revised measures, published on Monday, were based on directives issued in early 2015. According to the revised version, steelmakers intending to replace their existing converters with EAFs would be permitted to carry out the replacement at a ratio of 1:1 of existing capacity versus new capacity.

Second, MIIT has reset its capacity conversion table used for calculating converter and EAF capacity, decreeing that converters or EAFs producing either ordinary carbon steel or special steel be afforded the same value regarding replacement capacity.

Read More

About Article Author

The Barrel

S&P Global Platts provides market insights so people can make more informed trading and business decisions.. They're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to their expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping. S&P Global Platts provides critical information for the commodities & energy markets to make physical commodity markets more transparent and efficient. S&P Global Platts blog, The Barrel, provides the essential perspective on global commodities.

Related Items

Gold steady ahead of Fed minutes, Treasury currency report

Gold has posted slight gains in the Wednesday session. In North American trade, the spot price for one ounce of gold is $1227.24, up 0.19% on the day. On the release front, construction indicators missed the forecasts. Building Permits ticked up to 1.24 million, shy of the estimate of 1.27 million. ...

USD/JPY – Japanese yen edges higher, investors await Fed minutes

The Japanese yen has posted slight gains in Wednesday trade. In the North American session, the pair is trading at 112.04, down 0.20% on the day. On the release front, construction indicators missed the estimates. Building Permits ticked up to 1.24 million, shy of the estimate of 1.27 million. Ho ...

Mexico's Next Government Faces Bind In Pemex Ethane Deal

Mexico's incoming government will soon inherit a costly dilemma over an ethane supply contract between national oil company Pemex and a consortium led by a unit of Brazilian builder Odebrecht. Under the contract's terms, Pemex has had to supply ethane well below current market prices. The plant is o ...

Technology Set To Have Key Role In Energy Transition

When it comes to meeting the challenge of reducing CO2 emissions worldwide, the global oil industry has a critical role to play, according to the secretary general of OPEC. “For our industry, we need to recognize that the environmental challenge is not only oil and gas in and of themselves. It is ...

GBP/USD – British pound dips on soft CPI

GBP/USD has lost ground in the Wednesday session, erasing the gains seen on Tuesday. In North American trade, the pair is trading at 1.3132, down 0.39% on the day. On the release front, British CPI dropped to 2.4%, shy of the estimate of 2.6%. In the U.S, construction indicators missed the forecas ...

MagneGas Applied Technology (MNGA) Stock: Gaining On Sales Update!

MagneGas Applied Technology Solutions Inc (NASDAQ: MNGA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced a sales update that proved to be positive. Of course, the news excited investors, sending the stock screaming for the top. Tod ...