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.

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The Barrel

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