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Furnace closures in China increase scrap exports

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The closure of dangerous induction furnaces in China has caused flows of displaced steel scrap exports to India, Japan, South Korea and Taiwan, despite the country’s 40% export duty.

A delegate told the Bureau of International Recycling (BIR) conference in Hong Kong that higher exports were caused by the crackdown in China on unlicensed furnace, and the steel produced by them.

It was suggested that the exports were likely to be a temporary phenomenon, because China had the potential to melt significantly higher volumes of scrap in future.