Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Medium frequency furnaces in China’s Yangjiang city will be phased out completely by August 30, according to China Metallurgical News. The city government has asked stainless steel enterprises in the area to ensure they dismantle all these furnaces along with the related equipment. The government plans to penalise enterprises if they fail to follow the directive.

 

Phasing out induction furnaces is China’s way to reduce the oversupply of stainless steel. China’s supply-side reforms also curb the production of substandard steel products. The melting process in induction furnaces does not allow effective control over the composition and thereby yielding low-quality products.

 

China is the largest producer of stainless steel. In the first quarter of the year, the country produced 6.08mn mt of total 11.69mn mt stainless steel produced in the world, according to International Stainless Steel Forum. Yangjin City is one of the stainless steel hubs in the country. 

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