China eyeing over 300 mnt ferrous scrap usage in steelmaking by CY'25

China, globally, the leading scrap consuming country, is planning to boost industrial development to support its economic growth by CY'25. The country's Ministry of Industry and Information Technology (MIIT) has announced that the steel industry would use more than 300 million tonnes (mnt) of scrap by 2025.

The scrap recovery and processing system is likely to be improved, and the utilization level would be significantly enhanced.

Furthermore, the smelting route will be obviously optimized, and the output of EAF steel will account for more than 15% of China's total output of crude steel. With this structure, supply and demand would, by and large, reach a dynamic balance.

High-quality development of steel industry

• Advanced technologies and equipment: MIIT issued guidance that promotes advanced technologies like a high level of smart production to meet global competitiveness.
  
  
• Curbs on steel capacity expansions: New steel capacity is strictly prohibited. Efforts will be made to curb the mass construction of steel by strictly implementing laws, regulations and policies on capacity replacement, and environmental impact assessment, emission permits, and energy assessment, and hold back the expansion of steel capacity in the form of machining and casting.
  
  
• Carbon emission plan: The ministry is clearly stressing on promoting green and low-carbon development of the steel industry. More than 80% of steel capacity will achieve ultra-low emissions, and more than 2% energy consumption per tonne of steel will be reduced overall, and water usage intensity will be lowered by more than 10%, so as to ensure 'Carbon Peaking Action Plan by 2030'.
  
  

Ferrous scrap imports rebound to two-year high in CY'21: China's scrap imports rebounded in CY'21. China's MIIT jointly issued a notice on 31 Dec'20 to approve the duty-free imports of recycled raw material for steelmaking with effect from 1 Jan'21. Imports rose mainly during the second quarter of the year, as many buyers were unsure about new import regulations in the first quarter. The country's scrap import volume in 2021 stood at 5,01,992 tonnes (t) of ferrous scrap last year as compared to 24,633 t in Jan-Dec'20, as per customs data maintained with SteelMint.

China's steel scrap use for steel making was recorded at 220 mnt in CY'20, according to the Burea of International Recycling (BIR).