China's scrap steel industry has great potential for development

Li Shubin, vice president of the China Association for the Utilization of Scrap Steel, recently stated at the 2013 China Iron Ore Conference jointly sponsored by the MB (British Metals Herald) and China Minmetals Corporation that China’s scrap steel industry is a rising resource recycling boom. Industry has a broad prospect of development and great potential for development. ”

Li Shubin said that in 2012 due to shrinking demand in the steel market led to a comprehensive loss of enterprises, steel prices continued to slump; Since the full value-added tax was imposed in 2011 after the scrap price rose 300-500 yuan, cost pressures to the use of scrap steel companies, dampened steel The enthusiasm of the factory for using steel scrap to produce iron and steel, in 2012, the total scrap consumption in China declined for the first time in 11 years. In 2012, steel production in China used 84 million tons of scrap steel, which was 7 million tons lower than in 2011.

Li Shubin said that the “Twelfth Five-Year” development plan has brought about tremendous opportunities for the development of the scrap steel industry in China. The "12th Five-Year Development Plan for the Iron and Steel Industry" clearly points out that the establishment of a recycling system for scrap steel that meets the requirements for the development of China's steel industry should be accelerated. Relying on the domestic scrap processing and distribution companies that meet the environmental protection requirements, we will focus on building a number of scrap steel processing demonstration bases, improve the processing and recycling distribution industry chain, improve the level of scrap steel processing technology and scrap steel products, and actively study and formulate preferential policies and measures for importing scrap steel to encourage Overseas to establish scrap recycling, processing and distribution bases.

In the past two years, China's scrap steel application association has always taken industrialization, productization, and regionalization as the starting point and end-result of building a scrap steel processing and distribution system. More than 40 waste steel processing and distribution companies have been established and distributed in 28 cities and regions in 19 provinces across the country. The annual processing volume of scrap steel has reached 25 million to 30 million tons, accounting for more than 50% of the steel industry's procurement of social steel scrap. In the next five years or even longer, through the guidance and assistance of the China Association for the Utilization of Scrap Steel, a total of 100 scrap steel processing and distribution companies with a processing capacity of 200,000 to 1 million tons of scrap will be built throughout the country. Through reasonable layout, advanced equipment and stable supply channels, the processing and distribution capacity of scrap steel has been increased from the current 25 to 30 million tons to 40 to 50 million tons.