China's MEE rolls out new rules on ferrous scrap imports

The new regulations specify that starting from August 1 this year, the ferrous scrap materials meeting the following standards – which are established based on the newly effective GB/T 39733-2024 - shall no longer be classified as solid waste and will be imported without restrictions.

Under the new rules, multiple categories of ferrous scrap can be declared under a single customs declaration, which was previously prohibited, provided they are separately packaged or distinguishable during unloading. However, ferrous scrap cannot be mixed with other types of recycled raw materials during shipment, nor can it be declared together with them under a single customs declaration.  

Recycling iron-steel materials are under HS codes of 7204100010, 7204210010, 7204290010, 7204410010 and 7204490030, according to the announcement.

However, such adjustments may not significantly boost China's steel scrap imports, as the stringent requirements for impurity levels remain unchanged, market sources believe. The high-purity scrap resources are limited worldwide and remain too expensive for Chinese users, Mysteel's survey showed.

As of June 16, the import price of HS-grade ferrous scrap from Japan – the top scrap supplier to China – was assessed by Mysteel at $340/tonne excluding 13% VAT, higher by a large $50/t than that of 6-8 common carbon steel scrap in Zhangjiagang in East China's Jiangsu province.

During January-April this year, China's total ferrous scrap imports fell by 10.6% on year to 90,879 tonnes, according to the data released by the country's General Administration of Customs.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com

Mysteel's previous reports on ferrous scrap standards:

China completes revising national standards for ferrous scrap

China starts revising national standards for ferrous scrap