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China has a particularly strong demand for imported iron ore, so why not utilize scrap iron for recycling?

Updated: Jun 5

China, as a vast and resource-rich country, possesses astonishing scale and resources.

Especially in the steel industry, China holds a leading position globally, with domestic iron ore reserves reaching as high as 16.246 billion tons.


This figure is remarkable, showcasing China's immense strength in steel production, seemingly capable of easily meeting market demands.

However, it's puzzling that China's demand for imported iron ore is particularly strong, accounting for about 80% of the total demand annually. This means that China relies almost entirely on imported iron ore.


So, what are the reasons behind this situation? Let's delve into the truth.

1. Significance of Imported Iron Ore


To some who are unfamiliar, iron ore might just seem like ordinary rocks containing simple iron elements.


However, in China, iron ore plays an irreplaceable role. Apart from iron elements, iron ore also contains valuable metals that, after advanced extraction techniques, can play crucial roles.

To promote economic development and fully utilize environmental projects, China has resolutely decided to import iron ore.


This not only helps in conserving domestic ore resources but also enables the acquisition of higher-quality iron ore.

2. Challenges of Scrap Iron Recycling


Despite China's abundant ore resources, most of them are low-grade iron ores, with low iron content, which are insufficient to meet the demand for metal extraction.


The domestic extraction cost of iron ore is high, making imported iron ore more attractive.


Although scrap iron recycling is a solution, its complexity involves aspects such as scrap iron output and evaluation of recycling results.


Due to the dispersed output of scrap iron and uneven distribution of enterprises, this process is more challenging.

According to statistics, while China's annual demand for steel reaches 870 million tons, the scrap iron recycling volume is only about 200 million tons, indicating a huge gap.


Compared to imported ores, scrap iron contains more impurities, its quality cannot be guaranteed, and it cannot be directly used for producing high-quality steel.


Therefore, to ensure the quality of metal components and promote the dual balance of economy and environment, China has decided to abandon scrap iron recycling.


3. Reuse of Scrap Copper and Scrap Iron


China has a large output of scrap copper and scrap iron, but it's not wasted; it undergoes recycling every year.


Through processes like cutting and smelting, scrap copper and scrap iron can be transformed into high-quality steel, reducing environmental pollution.

4. Promoting Green Steel Industry


The main problem facing the steel industry is environmental pollution, which must be minimized to achieve green production.


With continuous technological advancements, China has achieved ultra-low emissions in the steel industry, making significant contributions to environmental protection.


In the future, the steel industry will continue to focus on green and low-carbon development, continuously develop new materials, reduce greenhouse gas emissions, and contribute to the construction of prosperous and green industrial zones.

5. Steel Smelting Process


Steel production requires a large amount of scrap iron and iron ore, which undergo strict processing procedures.


Subsequently, through processes like electric furnace steelmaking and continuous casting, steel of various shapes is finally obtained.


By understanding the importance of iron ore to China's economy and the impacts of imported iron ore and scrap iron recycling on the steel industry, we gain insight into the complexities of the situation.

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