CONF: China's steel scrap usage seen stable in Jan-Oct
"This year, China's steel scrap industry has suffered multiple blows including weak demand and negative margins, which is constraining the country's steel scrap usage," Feng told delegates attending the National Steel Scrap Conference in Xiamen in Southeast China's Fujian on December 7.
Feng Helin, secretary general of CAMU
However, the fact that "green development" has become a core issue for China's steel industry will boost domestic scrap demand and bring new opportunities to the country's scrap industry in the future, Feng added.
"(Chinese) steelmakers should expedite their formulation of plans to reduce carbon emissions in their operations, so that they can address the emerging challenges in the global 'green trade' more confidently," he explained, citing the inevitable rise in export costs for Chinese steel mills after the European Union's formal initiation of the Carbon Border Adjustment Mechanism. "This will definitely force domestic steel mills to expand their utilization of steel scrap," he said.
Chinese regulators are also dedicated to promoting the high-quality development of the steel scrap processing industry through the study and implementation of specific measures for the recycling of ferrous scrap, Feng pointed out.
For example, China's Ministry of Industry and Information Technology has set a standard to qualify domestic steel scrap recycling and processing companies and keeps persuading more companies to standardize their operations, Feng illustrated.
As of now, a total of 707 steel scrap dealers and recyclers in China have gained approval from the ministry, and their combined scrap processing capacity is around 170 million tonnes/year, accounting for 60-70% of the total recycled scrap in the country, according to Feng.
Late last month, the ministry revealed the name list of another 135 enterprises in the latest batch of domestic steel scrap suppliers to become qualified under its certification system, as Mysteel Global reported.
"China will see its processing and distribution system of steel scrap industry keep improving," Feng believes.
Written by Anthea Shi, shihui@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
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