How to rebate tax from china mil steel

Is Chromium the new Boron in China?

As we were informed by one of our Chinese Steel mill  friends, some mills are attempting to add Chromium to their steel so they can call carbon steels “alloy” and qualify for export rebates.
The funny thing is, customers are wary of wire rod with Cr added.  Why? Well, I’m no metallurgist, but I do know Cr is considered a “tramp element” in carbon grades of wire rod.
If the producer uses an electric arc furnace and melts scrap, Chromium (Cr) will be higher than a mill that uses either BOF steelmaking or DRI.

Electric Arc furnace

Any Cr in the melted scrap will remain in the steel, whereas in BOF or DRI based steelmaking, you have clean steel without Cr, unless added to make a specific grade of steel.  Customers making fine wire or severe bending or making fasteners many times put a limit on the acceptable Cr level as it makes the steel more brittle or less ductile in their applications.
Could Cr be okay for rebar?  Yes, this application is much less critical.
But already some news sources are reporting reluctance to buy Cr added grades.
One mill offered Cr-added rod at $380/mt FOB, but customers did not want to take the risk because of quality concerns. Other mills are offering Boron added wire rod for about $410
Most Chinese mills are BOF, so in order to create these grades, they will need to add Cr to the molten steel.

Customers so far are reluctant to try this.
Stay tuned for the rest of the story!

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