Technology Innovation Of Scrap Reusing

With the recent 30 years’rapid industrialization, steel production and consumption increase significantly, it will be China’s scrap high-yield period in next decade. Recycling scrap steel for steelmaking is the best way for iron and steel industry to get out of current economic and environmental predicament such as shortage of resources, environmental pollution. Using scrap steel for steel making, abandoning the traditional production way of high input, low output, high energy consumption, and low efficiency, in essence, is to change the selection and combination of original elements. The fulfillment of this goal relies largely on technological innovation of iron and steel enterprises. Iron and steel industry is tightly associated with its upstream and downstream industry. The coordination mechanism of interests between scrap supplier and steelmaking enterprises is the background for steelmaking enterprise technology innovation. Currently, scrap transaction usually takes the form of spot trading and short-term price agreements, with price frequent adjustment. It is not conducive to control resources and reduce costs. In this context, the paper examines steel company’s scrap recycling technology innovation based on vertical coordination mechanism, analyzing the effect of vertical interest coordination mechanisms on iron and steel enterprise technology innovation. According to the steel industry realities, scrap recycling technology innovation is divided into two types: technological innovation of improving energy efficiency, technological innovation of improving the utilization efficiency of scrap. This study will help iron and steel enterprises to make technology innovation decision, enhancing technology innovation theory’explaining power regards industry reality. Main contents include:(1) By reading literature, tracking research at home and abroad on scrap recycling and technology innovation, and effects of vertical market structure on innovation to analysis the outcome of existing study about vertical coordination mechanisms of interest affecting downstream innovation, and the transaction characteristic of the scrap suppliers and steel companies to obtain theoretical basis for this article.(2) Revealing the mechanism of vertical interests coordination affecting steelmaking enterprise’s technology innovation. Study the vertical structure and transaction characteristics between scrap suppliers and iron and steel enterprises. Combining with the reality of scrap transaction, compare the reaction of scrap steel price on downstream innovation in short-term price agreement and long-term price agreement. Study steel firm’s technology innovation under different coordination mechanism to construct the theoretical understanding of vertical coordination mechanism affecting steelmaking enterprise technology innovation.(3) Based on the theoretical understanding of vertical coordination mechanism affecting innovation, construct models to analysis downstream innovation decision under different coordination mechanisms. Analysis the characteristics of technological innovation of improving energy efficiency, building energy efficiency improving technology innovation model and scrap utilization efficiency improving technology innovation model based on vertical coordination of interests, solving the equilibrium results under different interests coordination mechanism (short-term price agreements, long-term price agreements).The study found that in long-term price agreements, compared with short-term price agreements, technology innovation of improving energy efficiency can bring scrap suppliers and steel companies more profit, while technology innovation of improving the scrap utilization efficiency bring more under short-term price agreements than under long-term price agreements, iron and steel enterprises choose technology innovation of improving energy efficiency in long-term price agreement, while in short-term price agreements will choose technology innovation to improve scrap utilization efficiency.