Leading steelmaker Baowu, which exceeded 1bn mt steel production in 2020 is keen to raise its ferrous scrap consumption in the coming years. The steelmaker has commenced a steel scrap processing and production facility with an annual capacity of 2.8mn mt in the eastern Chinese province of Anhui on Jan 4.
The facility is built at a total investment of CNY440mn ($68.35mn). Interestingly, the entire procurement, production, sales, settlement, suppliers and operations of the unmanned production facility will be managed through an online platform.
Baowu group’s trading unit Ouyeel Blockchain Finance and Metal Recycling Resources has made their first purchase of ferrous scrap from Japanese traders under the country’s new ferrous scrap import standards, effective Jan 1. The deal was for 3,000mt of HS grade scrap to Shanghai port was booked at around $450-480/mt cfr from Mitsui Trading. Judong Company, a Baosteel owned trading house contracted 2,800mt HS scrap from Heiwa Shoji on Jan 2, which will be delivered Zhejiang Taizhou port.
Also, China’s currency CNY has hit its highest level against the US dollar in more than two years, which is expected to support importers in the coming days.