Bloomberg reported a dealer in China says scrap metal will replace iron ore as more recyclable material becomes available to steel makers.
As quoted in the market news:
China will increase scrap use in steel production in the next three years, displacing some demand for iron ore, as more recycled material becomes available, according to the nation’s largest scrap dealer.
Scrap may account for more than 20 percent of steel production in China by 2015, from 14 percent now, which will put some pressure on iron ore prices, Chun Chi Wai, chairman of China Metal Recycling Holdings Ltd. (773), said yesterday by phone from Shanghai. The company controls about 6 percent of the fragmented scrap market, he said.