China unveiled updated regulations for entry into the iron and steel scrap processing industry Friday, its latest move as part of a battle waged against induction furnace operators -- this time by starving them of a key raw material: scrap.
The sale of scrap to induction furnace-based producers of construction steel will be forbidden, according to regulations that take effect from March 31, 2017, released by the Ministry of Industry and Information Technology.
Selling scrap to operators of electric arc furnaces smaller than 30 mt will also become illegal, with with exception of high-alloy EAFs, the ministry said.
China has set the complete elimination of induction furnaces as the cornerstone of this year's supply side structural reforms in steel, China Iron & Steel Association chairman Ma Guoqiang said last week.
