China’s scrap generation to remain on steep growth curve

In the year 2000, China was consuming around 100 million tonnes of steel per year but this figure has since soared to between 800 and 900 million tonnes.

As a consequence, “we do see China’s steel scrap generation growing rapidly over the next decade”, guest speaker Ian Roper told the BIR Ferrous Division webinar on October 14.

The presentation made by Mr Roper, who is General Manager of Shanghai Metals Market, suggested a generation figure for China of more than 350 million tonnes per annum by the end of this decade. “We are expecting obsolete scrap volumes to be growing 10 to 20 million tonnes a year,” he noted. Alongside increasing scrap generation and collection, China was massively boosting its electric arc furnace capacity, with “60 million tonnes of new projects coming on in the next few years”.

Although steel scrap shipments into China are banned at present, discussions have been taking place about a possible reclassification that would enable imports to resume. However, as Mr Roper stressed, a similar reclassification process had begun some time earlier for certain non-ferrous scraps but official sign-off from customs was still awaited. Despite recent news reports to the contrary, Mr Roper insisted: “We are not anticipating steel scrap being allowed into China from early next year. We think that ultimately there will be a change – some kind of reclassification – but that is more likely to happen at the end of next year.”

In his “World Steel Recycling in Figures” update for the January-June 2020 period, the BIR Ferrous Division’s Statistics Advisor Rolf Willeke noted that China’s steel scrap usage for crude steel production dropped to 93.75 million tonnes in the first half of this year from 101.13 million tonnes in January-June 2019, but he also emphasised that the country’s steel scrap consumption had been 25.7% higher in this year’s second quarter when compared to quarter one.

In January-June 2020, EU steel scrap exports slid 10.7% year on year to 9.776 million tonnes and US overseas shipments edged 2.3% lower to 8.401 million tonnes, whereas Japan bucked the generally downward trend in registering year-on-year export growth of 38.2% to 4.884 million tonnes, Mr Willeke added.

In a series of market reports, Zain Nathani of the Nathani Group of Companies said ferrous scrap demand would remain “subdued” in India for the remainder of the year whereas Pakistan and Bangladesh had been receiving regular bulk and containerized shipments from major exporters such as the USA, the UK and Japan. Denis Reuter of Germany-based TSR Recycling GmbH & Co. KG noted that scrap prices had been generally stable in most European countries at the start of October while Turkish mills had enjoyed some success in pushing prices lower. And providing the US market report in the absence of George Adams of SA Recycling, his company colleague Tom Knippel said scrap intakes were now similar to pre-COVID levels but mill capacity utilization rates were down from around 82% in 2019 to below 70%.

Representing South Africa’s Metal Recyclers Association (MRA), Quintin Starkey confirmed that his government had implemented a modified preferential pricing system for scrap, to remain in place until an export tax was introduced some time in 2021. The MRA was lobbying the government to adopt an ad valorem duty of 10% on ferrous scrap and 5% on non-ferrous scrap with a duty-free rebate system for metals not consumed locally and/or when supply exceeded demand.

BIR Ferrous Division President Greg Schnitzer of US-based Schnitzer Steel Industries Inc. told webinar viewers that everyone should be “proud” of how the scrap sector had withstood some “difficult” conditions over the course of 2020. And he added: “It’s nice to see worldwide demand for scrap and buyers we haven’t seen in years.” He looked forward to a “strong finish” to 2020 carrying forward into 2021.


  1. The path to Salvation for Bangla,is PRC. They have to let the PRC invest in the Gas and Power infra
    sector,to produce power at the LOWEST COST IN ASIA.In the time to set up the capacities,the ports can be deep dredged and the road infra be put in order.Once that is in place – the lowest cost manufacturing in THE WORLD,will be in Bangladesh.

    The Edge of Bangladesh,is Gas and the Sea (which makes for Offshore wind and tidal,low freight costs) – and combine that,with the power potential in Myanmar – and its cross border wheeling.

    The only issue is the rising sea and the soft soil – and so,manufacturing will need to move into the interiors,or power can be wheeled to Myanmarese SEZs.The Bangla success,will wipe out the ENTIRE MANUFACTURING INDUSTRY IN NORTH EAST INDIA,AND THE ENTIRE EAST COAST OF INDIA.

    Basically the Bangla state,has to allow Chinese,Korean and Japanese SEZs on an unrestricted basis,with limited NFE and Taxation – and the Taka will overshoot the Thai Baht and Peso,in 5 -10 years.

    That will complete the Chinese Triad and the Chinese Parallel in South Asia.

    The Chinese Triad is CPEC,Lanka SEZ and the Bangaladesh SEZ.Industry and manufacturing will migrate from Pakistan to Lanka to Chittagong,on a value addition mode,on an absolute basis.Dhaka will lose its LDC soon,and so,those units can be relocated in Lanka or CPEC.So Chinese SEZ in Bangla, Lanka and CPEC will wipe out the industry in the East,West and South of India – and the impact of that on banking,unemployment and inflation in India,is obvious.

    So there is a successful Chinese SEZ Triad

    The Chinese Parallel is a line from CPEC to the Deep Draft Port of Myanmar,with its SEZ.The intersection of the Chinese Parallel and the Chinese Triad,is the CRUCIFIXION of the Satanic nation of Hindoosthan

    East Bengal,Assam,Tripura and Manipur belong to Bangladesh.The 1st Ahom king was a Chinese, Arunachal are Hans and the rest are South Tibetans,and so,North East belongs to China

    Bangladesh ports are the IDEAL PORT TO BYPASS MALACCA,and exit the LOGISTICS TRAP OF THE US NAVY.It is a better option to Gwadar.Then come the ports in Myanmar,and then comes in Gwadar. Gwadar is viable,when Kashmir is an independent nation,Afghan is under Taliban rule (as a US puppet,can block Chinese logistics) and Baloch is under Control.

    That provides the pretext to the Chinese,to station the PLN,in The Bay of Bengal,Arabian Sea and build Artificial Islands in the Bay of Bengal,and Indian Ocean.

    Once North East India is lost – the Indian weasels will give up Kashmir and Uttarakhand

    Hence,the Chinese logistics and economic security strategy,will provide salvation to the People of Pakistan, Bangladesh,Lanka and Myanmar.This is providence and salvation.

    A Mahayana Buddhist nation (PRC) is providing salvation to 2 Islamic nations and 2 nations of Theravada or Hinayana Buddhism.dindooohindoo


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