Metal Recycling in China: China Opens Door for Ferrous Scrap

On 1st January 2021 China ended its two-year ban on steel scrap import. The ban was imposed in 2018 as prevention towards global dumping of low-grade scrap (https://www.argusmedia.com/en/news/2170387-china-to-impose-steel-scrap-import-standards-from-1-jan). 

China aims to increase its use of recycled metals like steel, copper, and lead in the coming years in the aim of fulfilling its goal of reducing greenhouse gas emissions. Being the top consumer of metals, it wants to increase the use of steel scrap by 23% by 2025. (https://www.asiafinancial.com/chinaplans-to-ramp-up-use-of-steel-scrap-metals-recycling. The ban upliftment has hence significantly affected the scrap imports). 

The change in plans has also led to advancement in recycling technologies. The world’s most advanced recycling facilities can be found in China. From the eastern coastal region Guangzhou in the south to Beijing and Tianjin in northern China, the country has pioneered in establishing high-tech metal recycling facilities followed by cities like Chengdu, Chongqing, and Anshan. (https://recycling.metso.com/blog/recycling/metal-recycling-trends-in-china/) 

For instance, according to Chinese customs data, imports in the month of April saw a spike of 186pc to 60,696t from March, taking January-April imports to 85,832t. As supplies from Japan were not enough to fulfil the ever-growing demand for metal scrap, Chinese scrap buyers began seeking supplies from Europe and USA. 

Photo reference from Pixabay copyright free images.

The initial orders of shred metal scrap cleared customs successfully. However, the main grade HMS1/2 80:20 might be a little tricky to import since the mixture of different thicknesses could be a challenge for inspection process. (https://www.argusmedia.com/en/news/2219033-chinas-ferrous-scrap-imports-spike-in-april) 

Being one of the biggest importers, any policy change in China which makes sure to impact global metal and metal scrap market. China aims to increase the EAF capacity to overall crude steel capacity to 15% from 2021 to 2025 and lift the steel scrap consumption in converters to 30% (https://www.spglobal.com/marketintelligence/en/news-insights/blog/bank-ma-revival-market-disruption-warning-venture-capital-funding-soars). 

Although the recommencement of scrap imports will not immediately ease the shortage of China’s domestic scrap resources, the new policies align with the industry’s long-term needs to reduce its over-dependency on iron ore and its goals of cutting carbon dioxide emissions. Import of the ferrous scrap means reduction in mining for ores and processing – significantly cutting down costs, emissions, and labor.

Dubai scrap yards are abundant with metal scrap of various mixtures and types. Just like Chinese dealers, Dubai scrap dealers are contributing to the cause of attaining carbon-neutrality and reducing emissions by helping the metal recycling companies in Dubai realize its potential. 

 

Disclaimer: This article(s) has been prepared solely for information purpose, using publicly-accessible sources that are believed to be accurate and reliable at the time of publishing. LUCKY GROUP accepts no liability whatsoever for any loss or damage resulting from the use of information, images or opinions expressed in the report. LUCKY GROUP does not give warranty of any kind regarding the completeness, accuracy and reliability of the information included in the article(s).

Global Forecast 2025 – Metal Recycling and its Growth

 

Photo reference from Pixabay copyright free images

2020 witnessed the biggest lockdowns imposed on countries across the globe owing to the COVID-19 pandemic. It has affected the global economies in more ways than one. Mainly, it has directly affected the production and demand, disrupting the demand and supply chain, and by causing financial instability in market segments. Did you ever think? How will global metal recycling market be impacted by the on-going crisis? What to expect in the year 2025? 

Let’s find out the emerging possibilities.  

In 2018, the metal recycling market was valued at USD 346.86 billion. This is projected to grow to USD 468.56 billion by 2025 with a CAGR of 4.39%. 

Metal recycling is a valuable process wherein the scrap metals can be recycled repeatedly without degrading its properties. Approximately 40% of worldwide steel production is made using recycled steel. Moreover, approximately around 400 million tons of metal is recycled worldwide each year. 

In the coming years, economies that show rapid progress in urbanization and industrialization like China, India, and Brazil are anticipated to provide an impetus to the on-going metal scrap recycling initiatives for the forecast period. (https://www.mynewsdesk.com/brandessence/pressreleases/metal-recycling-market-is-valued-at-usd-468-dot-56-billion-with-the-cagr-of-4-dot-39-percent-over-the-forecast-period-by-2025-3112852?utm_source=rss&utm_medium=rss&utm_campaign=Alert&utm_content=pressrelease )

Growing environmental awareness is a driving force behind the accelerated metal recycling business. Global metal recycling market is segmented on the basis of metal type, end user and region. Among the faster growing segment, growth of demand for ferrous scrap tops in the metal recycling market. This is mainly projected since recycling ferrous metals helps in reducing the quantities of solid waste that end up in landfills. Additionally, it helps in reducing energy consumption, CO2 emissions, water consumption, and air pollution. (https://www.prnewswire.com/news-releases/metal-recycling-market-worth-76-1-billion-by-2025--exclusive-report-by-marketsandmarkets-301021406.html)

Along with the growth in the market, we can also expect rapid development in the metal recycling technology. With growing complexity in the mixtures used for creating modern products, metal recycling technologies are sure to undergo changes and adapt new methodologies. 

Urban mining refers to recovering raw materials from electrical and electronic waste. Urban mining holds potential of finding up to 50 time’s higher concentration of valuable metals than ores that are extracted in mines. This segment holds a lot of potential for growth as many countries around the globe have started to realize its importance. There are millions of appliances that are still awaiting to be recovered, For example, in Africa, approximately 1 billion phones are discarded each year.  (https://www.recupel.be/en/blog/7-reasons-why-urban-mining-is-overtaking-classical-mining/ )

Recycling companies in Dubai play a significant role in metal recycling market. In a country like UAE that uses enormous amounts of metal each year, scrap metal yards in Dubai have contributed their part in taking a step towards achieving circular economy. 

Disclaimer: This article(s) has been prepared solely for information purpose, using publicly-accessible sources that are believed to be accurate and reliable at the time of publishing. LUCKY GROUP accepts no liability whatsoever for any loss or damage resulting from the use of information, images or opinions expressed in the report. LUCKY GROUP does not give warranty of any kind regarding the completeness, accuracy and reliability of the information included in the article(s).