Posted By:Infra Bazaar
Steel scrap is major raw material used in the production of steel by electric bow oven. The demand of the steel scrap is increasing with emerging steel markets. Countries like India, China, and Brazil have growing steel making industries and creating demand for more raw steel materials to use in production.
Sales in automotive industry have increased and also trades of construction are capable of fueling demand for ferrous scrap materials. The invention of new steel mills using electric arc boiler technology will also drive a demand for steel scrap.
The Indian scrap recycling rate is about 25% when compared to the US the net exporter of scrap with recycling rates is 80-90% and Europe holding about 70%. As per the reports, European steel industry is using electric arc furnace technology through which around 40% of steel production is executed. Furthermore, over 55% of all steel produced in European Union utilizes ferrous scrap metal as raw material in steel production.
According to the Frost & Sullivan report, the annual consumption of scrap is about 21 million metric tons while its imports are about 7 mmt a year, making it the world’s third-largest importer of scrap. Growth can only happen once the import duty and other free trade hurdles have been removed. India perhaps the only country in the world to impose an import tax on steel scrap. However India’s metal recycling industry has the potential to grow 11.4% per year until 2020.
A Global industry analysts Inc. predicts that the international market of ferrous scrap metal is expected to reach about 631.5 million tons in next five years. There are various factors conducive to this possible successful steel scrap market. The changes in automobile and construction industries demand of raw materials in emerging steel markets and founding of steel mills that use of electric arc furnace technology.