Chinas ferrous scrap supply is falling short of demand by around 10 million tonnes, which will have to be imported, a senior official with the China Assn of Metal Scrap Utilisation (Camu) said.
As Chinas crude steel production, which is expected to reach 700 million tonnes in 2012, continues to grow, consumption of scrap will increase to 91.3-96.6 million tonnes, Liu Shuzhou, Camus vice-secretary-general, said at a conference in Shanghai on Saturday April 21.
Meanwhile, the supply of scrap will fall behind to total about 87.5 million tonnes, excluding inferior material and that kept as stock, he said.
Scrap generated from steel mills is expected to reach 37 million tonnes this year, up 4% year-on-year, while supply from scrapyards could hit 54 million tonnes, an increase of 6.4% year-on-year.
Steelhome believes that there will be a shortage of about 30.6 million tonnes of scrap this year.
China imported 1.29 million tonnes of ferrous scrap during the first quarter of 2012, down 2.23% on an annual basis, according to customs data released on Monday April 23. email@example.com