EAF Production to Gain Ground, But BOF Production to Remain King
10/18/2016 - Electric arc furnace-based steel production will continue to grow faster than basic oxygen furnace production over the next several years, but the latter of the two will remain the dominant method, CRU North American steel consultant Josh Spoores said on Tuesday.
Speaking during the 20th annual Smithers Apex Met Coke World Summit in Pittsburgh, Pa., USA, Spoores said that even though EAF production will gain some share, it will be a nominal amount, considering that more than one billion tons is made annually.
“The difference that it makes is really not that much.”
What’s of greater concern is how much, and not how, that steel is made. And in 2015, approximately 60 million tons of steel capacity dropped out of the market last year, Spoores said.
“Which was fantastic. It helped to support prices globally earlier this year,” Spoores said.
However, as he noted: “The unfortunate thing is that the Chinese are very entrepreneurial, and as prices ran up, much of that capacity came back,” he said.
He said the Chinese are expected to cut 45 million tons of capacity this year.
“The difference that it makes is really not that much.”
What’s of greater concern is how much, and not how, that steel is made. And in 2015, approximately 60 million tons of steel capacity dropped out of the market last year, Spoores said.
“Which was fantastic. It helped to support prices globally earlier this year,” Spoores said.
However, as he noted: “The unfortunate thing is that the Chinese are very entrepreneurial, and as prices ran up, much of that capacity came back,” he said.
He said the Chinese are expected to cut 45 million tons of capacity this year.
