China's scrap generation to rise significantly - BIR

In the year CY'20, China was consuming around 100 mn t of steel per year, but this figure has soared to between 800 and 900 mn t. As a consequence, we do see China's steel scrap generation growing rapidly over the next decade, said Mr. Roper, GM of Shanghai Metals Market at the Bureau of International Recycling (BIR).

China's scrap generation may increase more than 10-20 mn t every year. Increasing its electric arc furnace capacity as new projects are coming up with a capacity of 60 mn t in the next few years.

Possible reclassification likely to enable scrap imports in China - Discussion on scrap import policies has been taking place that imports to China likely to resume by the end of next year, as currently scrap imports to China are banned. 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."

China's steel scrap consumption for crude steel production has dropped by 7.3% to 93.75 mn t in the H1 CY20 (Jan-Jun'20) as compared to 101.13 mn t in the contrast year (Jan-Jun'19). While, scrap consumption has been increased by 25.7% to 52.22 mn t in Q2'20 as compared to 41.53 mn t consumed in Q1'20 as per BIR report.

Key highlights-

• Ferrous scrap demand would remain "subdued" in India for the remainder of the year, said Mr. Zain Nathani of the Nathani Group of Companies at BIR World Recycling Convention Week 2020. However, he expects Pakistan and Bangladesh to continue to receive regular bulk and containerized shipments from major exporters such as the USA, the UK, and Japan.
  
  
• Turkey- the world's largest scrap importer, has observed an increase in its overseas scrap purchases 7.8% higher to 9 mn t during H1 CY20 (Jan-Jun'20).
  
  
• Europe remains the largest scrap exporter in H1 CY20, however witnessing a decline of 10.7% to 9.776 mn t.