Rumors that China Steel Corporation (CSC) plans to resume local scrap purchases for its refinery needs triggered concerns among electric arc furnace (EAF) operators.

Scrap dealers utilize this news to push for higher prices; however, CSC clarifies that any procurement serves as preparation for the 2030 carbon goals rather than a continuous trend.

CSC’s specific requirements focus on high-quality, clean industrial scrap, such as unpainted H-beams and steel plates thicker than 6mm. These strict standards differ from the general scrap used by EAF plants, as the material must lack zinc or paint coatings.

Despite these differences, dealers warn that premium domestic supply is already scarce, pressuring EAF mills to increase bids to remain competitive. CSC maintains it has no intention to disrupt the market or compete directly with its downstream customers for standard raw materials.