Division 21Manufacture of carbon steel from cold ferrous feed

### Division 21—Manufacture of carbon steel from cold ferrous feed > Note: Carbon steel, relevant product and saleable quality are explained in Part 2. 321 (1) The manufacture of carbon steel from cold ferrous feed is the physical and chemical transformation of cold ferrous feed (such as ferrous scrap, pig iron and flat iron) by heating and melting into liquid steel and the subsequent casting of the liquid steel to produce one or more of the following: (a) continuously cast carbon steel products; (b) ingots of carbon steel; (c) hot‑rolled carbon steel products, which commenced hot‑rolling at a temperature higher than 800 °C. (2) The manufacture of carbon steel from cold ferrous feed may also include the physical transformation of continuously cast carbon steel products into hot‑rolled carbon steel products which commenced hot‑rolling at a temperature higher than 800 °C where the continuously cast carbon steel products are produced at any other facility that conducts: (a) the activity of integrated iron and steel manufacturing; or (b) the activity of manufacture of carbon steel from cold ferrous feed. (3) The manufacture of carbon steel from cold ferrous feed is specified as an emissions‑intensive trade‑exposed activity. (4) The manufacture of carbon steel from cold ferrous feed is a highly emissions‑intensive activity. > Note: See Part 4. (5) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the basis for the issue of free carbon units is by a tonne of either or both continuously cast carbon steel products and ingots of carbon steel that: (a) is produced as part of carrying on the emissions‑intensive trade‑exposed activity; and (b) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (c) is of a saleable quality. (6) For the production of hot‑rolled carbon steel products that are long products, the basis for the issue of free carbon units is by a tonne of long products of hot‑rolled carbon steel that: (a) is in coils or straight lengths; and (b) is generally produced in rod, bar and structural (section) mills; and (c) generally have a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and (d) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and (f) is counted as a relevant product only once in relation to the carrying on of the emissions‑intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed; and (g) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (h) is of saleable quality. (7) For the production of hot‑rolled carbon steel products which are flat products, the basis for the issue of free carbon units is by a tonne of flat products of hot‑rolled carbon steel that: (a) is flat in profile, such as plate and hot rolled coil; and (b) is generally produced in hot strip and plate mills; and (c) is generally at least 600 mm wide; and (d) is generally no thicker than 150 mm; and (e) is produced by carrying on the emissions‑intensive trade‑exposed activity; and (f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and (g) is counted as a relevant product only once in relation to the carrying on of the emissions‑intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed; and (h) is not a relevant product for the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; and (i) is of saleable quality. (8) For paragraphs (6)(e) and (7)(f), the continuously cast carbon steel products must be produced as part of carrying on: (a) the emissions‑intensive trade‑exposed activity of integrated iron and steel manufacturing; or (b) the emissions‑intensive trade‑exposed activity of manufacture of carbon steel from cold ferrous feed.