Ferrous products; remelting scrap ingots

HS code 720450 covers the production and trade of ferrous products, specifically remelting scrap ingots. This industry plays a crucial role in the global steel supply chain, as it allows for the recycling and reuse of scrap metal, reducing the need for virgin raw materials. The ferrous products industry is a key component of the broader metal manufacturing sector, contributing to the production of a wide range of steel-based goods that are essential for infrastructure, construction, transportation, and numerous other industries.

The production of ferrous products under HS code 720450 typically involves the remelting of scrap metal, such as steel, iron, and other ferrous alloys. This process often takes place in electric arc furnaces or basic oxygen furnaces, where the scrap is heated and melted down, allowing for the removal of impurities and the creation of new, high-quality ingots or semi-finished products. The remelting process is a crucial step in the recycling of ferrous metals, as it enables the recovery and reuse of valuable materials that would otherwise be discarded.

The main inputs required for the production of ferrous products under HS code 720450 include scrap metal, such as 720410 Ferrous waste and scrap; of cast iron and 720421 Ferrous waste and scrap; of stainless steel. Additionally, the industry relies on various energy sources, such as electricity or natural gas, to power the furnaces and other equipment used in the remelting process. Specialized machinery, including electric arc furnaces, ladles, and casting equipment, are also essential inputs for this industry.

The primary outputs of the ferrous products industry covered by HS code 720450 are remelted scrap ingots, which can be further processed and used in the production of a wide range of steel-based products. These ingots may be consumed by industries such as 7207 Semi-finished products of iron or non-alloy steel, 7208 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, and 7209 (Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated).