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Price Analysis

On the third technological exchanging meeting of direct reduced iron, experts agreed that the direct reduced iron is the high-quality furnace charge of the electric stove both at home and abroad, it is the ideal furnace charge for smelting pure steel and high-quality with electric stove, so we can not regard it just as the substitute of scrap steel simply. "Applied Technique and Discussing about Steel-making in Electric Stove with Direct Reduced Iron (sponge iron) Exchanging Meeting" was held in Nanjing in November of 1996 by Chinese Metals Society, They emphatically popularized to use direct reduced steel (sponge iron) in the electric stove smelting. The meeting confirmed the price of direct reduced iron (sponge iron) is higher than 10% of the price of high-quality scrap steel, this accords with the principle of “ high quality and high price” . Because the role of direct reduced iron (sponge iron) in steel-making, its price is 10% higher than that of high-quality scrap steel abroad.
In recent years, as the shortage of high-quality scrap steel in the international market, the price of direct reduced iron (sponge iron) goes up progressively, the demand of scrap steel increases by 8.8% each time, its price rises naturally by 10%.
The production of direct reduced iron (sponge iron) has just started in our country, to use direct reduced iron (sponge iron) in the electric stove is at the popularized stage, the price of scrap steel and raw iron is 2200~2500 Yuan / ton, and the price of direct reduced iron in a domestic enterprise is 2500 Yuan / ton (not before d). So the market is easy to accept 2500 Yuan / ton after blocking.


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