China has allowed the imports of high-quality recycled iron and steel raw materials starting this year, according to a national standard issued January 1, 2021.
The recycled iron and steel raw materials that complies with the standard (GB/T39733-2020) are not solid waste and can be imported freely, according to an announcement issued by the Ministry of Ecology and Environment, along with the National Development and Reform Commission and other central ministries.
Followed the announcement, Ouyeel, a trading subsidiary of state-owned Baowu Group, reached an agreement with Japan's Mitsui & Co over 3,000 tonnes of recycled heavy steel, and Zhejiang Judong bought 2,800 tonnes from Japan's Heiwa Shoji Co., Ltd.
Recycled iron and steel raw materials are waste iron and steel after classified recovery and processing treatment, can be used as ferrous resources directly into the furnaces.
The eased import control of ferrous scrap would significantly reduce pollutant emissions in the steel-making sector, in part contributing to the country's long-term carbon neutral goal.
Increased use of scrap steel will help China's steel industry to reduce reliance on iron ore.China is the world's largest consumer of iron ore, with about 80% of its demand met by foreign countries. China has been heavily dependent on Australia, which accounts for about 70% of its iron ore imports, and Brazil, about 20%.
Import iron ore prices, which have surged by more than 50% compared with the start of 2020, have severely eroded profit of China's steel sector.
Source:sxcoal
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