China initiates revision of standards for recycled steel raw materials

The China Iron and Steel Association (CISA) initiated the revision of the national standard "Recycled Steel Raw Materials" (GB/T 39733-2020) in Beijing on 15 December 2023, following expert approval on 6 April 2023. The National Standards Committee issued the revision plan on 1 December 2023.

The National Standards Information Public Service Platform highlights the pivotal role of GB/T 39733-2020 in facilitating the import of foreign recycled steel raw materials, reducing reliance on iron ore imports, and enhancing China's steel industry competitiveness in global markets. Despite recent imports, there's a need to revise the standard to further increase imported recycled steel raw materials and align with the evolving needs of the steel industry.

This revision primarily centres on two key technical enhancements:

1. Expansion of recycled steel types: The update introduces an increase in the variety of recycled steel raw materials, adjusting the count of small-sized variants from 3 to 4, with the addition of the LRS304 grade.
   
   
2. Impurity requirement adjustment: The impurity requirements undergo modification, shifting from the previous three grades of "0.3%, 0.8%, and 1.0%" to the revised standards of "1.0%, 1.5%, and 2.0%."
   
   

The revised national standards aim to align with the current market and operational needs, promoting the import of high-quality recycled steel raw materials (steel scrap). This initiative seeks to alleviate cost pressures on domestic recycled steel raw materials and iron ore, enhance the supply capacity of recycled steel raw materials, and meet the requirements for low-carbon and green development in the steel industry.

Crude steel production: Feng Helin, Executive Vice President and Secretary-General of the China Steel Scrap Utilisation Association, reported that China's crude steel production saw a y-o-y increase of 1.4% to 874.7 mnt from January to October 2023. Pig iron production rose by 2.3% to 744.75 mnt. However, steelmaking scrap consumption decreased by 0.6% to 183.35 mnt, with comprehensive steel scrap consumption per tonne of steel dropping by 2.2% to 209.6 kg/t. Steel scrap prices experienced fluctuations throughout the year, ranging from 2,748 to 3,159 RMB/t.

Import volume in 2022: In 2022, China imported 558,900 t of recycled steel raw materials, constituting 0.57% of the global trade volume, which fell by 14.3% y-o-y to 97.6 mnt. From January to October 2023, China's cumulative imports increased by 15.41% y-o-y to 456,800 t. Japan supplied 54.96% (251,000 t), South Korea 10.53% (48,100 t), and Malaysia 6.84% (31,200 t).

Future outlook: Academician Wang Guodong predicted a promising future for the recycling economy in China. The Institute of Information forecasts that by around 2060, China's steel scrap supply will equal demand, reaching an annual peak of 627 mnt. This shift towards an all-steel scrap era with Chinese characteristics emphasises the importance of controlling steel scrap resources.