Metalnewsnet 26 Apr:

German steel recycling firm Cronimet Group on Friday inaugurated a plant in Shanghai in a bid to tap into China's potentially huge scrap steel market.

The 54,000 square meter warehouse, located in the city's Baoshan district involves a total investment of EUR 15 million. It is Cronimet's first plant in Asia and the company's biggest. Its annual production capacity is expected to reach 250,000 tonnes.

According to Mr Joachim Pilarsky MD of Cronimet Group, Our Chinese clients include leading steelmakers such as Shanghai based Baoshan Iron & Steel Co Ltd and Taiyuan Iron & Steel Co Ltd of Shanxi province.”

According to Mr Pilarsky, scrap metal recycling can be a good substitute to iron ore in steel production, and its ratio in steelmaking is increasing worldwide. He said that "In Europe and America, three quarters of stainless steel is made from scrap. Not only does this reduce carbon dioxide emissions by up to 20% but it also saves 10% in cost compared with iron ore.”

Mr Lu Fuzhen consulting manager with Lange Steel Shanghai a steel information provider said that "China is in the very early stage of steel recycling, the development of which will greatly ease the country's demand for iron ore, and also lower steel production costs substantially.”

(from China Daily)