China, in the not too distant future, will be producing a shocking amount of scrap steel, and this is why Chinese steel production will move to electric arc furnaces. The US and Europe moved to EAF production because it is cheaper to produce steel that way--the Japanese were beating everybody on price in the 1970s, so the "West" wasn't going to use something to raise their costs, they already had expensive labor and "legacy" costs. China's costs on basic oxygen furnaces are cheaper because of scale and cheaper labor. As I mentioned above, the drive is toward Chinese self-sufficiency, and for the Chinese to use their own steel scrap will enable them to eliminate dependence on "foreign" inputs.