Are you curious about the top scrap factories in China and what sets them apart? Let’s dive into the world of metal recycling in China, where giants like China Recycling Development Corporation Ltd., China Baowu Steel Group Corporation Limited, and GEM Co. Ltd. are leading the way. Here’s a look at these industry leaders and the innovative approaches they bring to scrap metal recycling.
China increases its presence in the US scrap sector in 2023
Product Details: The U.S. exported various types of recycled metals in 2023. Copper-bearing scrap was the most extensively exported, with over 875,000 tons exported, nearly matching the 906,000 metric tons used in melt shops. China received a substantial portion, accounting for 39.7% of U.S. copper scrap exports, totaling nearly 350,000 metric tons, a 12% increase from 2022. Aluminum scrap exports saw a 2.9% increase to 2.1 million metric tons, despite weaker demand from India. China received about 10% of U.S. aluminum scrap exports, amounting to 212,000 metric tons. Recycled steel exports declined by 9.2% compared to 2022, with Turkey emerging as a
primary buyer, followed by other nations like Taiwan and Vietnam.
Pros:
– Increased demand for recycled copper scrap from China, with a 12% increase in ex…
– Growth in aluminum scrap exports to various countries, including Thailand, Hong…
– Turkey and other countries showed increased demand for recycled steel, offsettin…
Cons:
– Decline in recycled steel exports by 9.2% compared to 2022.
– Reduced purchases of U.S. recycled steel from key markets like Mexico, India, Ba…
– Significant decline in Chinese imports of U.S. ferrous scrap, down 91% from 2022…
China steel exports hitting scrap markets
Product Details: Chinese exports of semi-finished and finished steel products have increased significantly, impacting the global long steel industry. In 2022, these exports were 5.6 million tonnes, rising to 7.7 million tonnes in 2023 and expected to reach 8.7 million tonnes in 2024. Chinese finished steel products are dominating most markets, particularly affecting the quality scrap market. Turkish mills are opting for cheaper Chinese billet over higher-priced scrap, which is pressuring scrap prices. The global supply and demand balance in the long steel industry is becoming increasingly unstable due to these exports.
Pros:
– Attractive prices for Chinese billet are providing Turkish mills with a cheaper…
– The availability of cheaper Chinese steel products is helping to meet demand in…
Cons:
– The influx of Chinese steel exports is destabilizing the global long steel indus…
– The increased competition from Chinese exports is forcing other countries to ini…
– Turkish and other regional steel producers are facing significant challenges as…
– The preference for Chinese billet over scrap is negatively affecting scrap price…
TRADE REVIEW: Asian steel, scrap brace for mixed Q4 on …
Product Details: Asian steel and scrap markets are facing significant challenges due to weak demand, particularly in the property and construction sectors. Scrap prices are under pressure from tepid downstream demand and increased competition from billet imports. Chinese domestic steel prices are expected to fluctuate at lower levels amid subdued demand and relatively strong production. Finished steel exports from China are increasing as domestic demand cannot absorb the high production volumes.
Pros:
– India’s steel consumption is expected to grow 7.5% over 2023-24, driven by a ris…
– Arbitrage opportunities may arise in Q1 as the spread between CFR Southeast Asia…
– Japanese mills are maintaining strong prices for scrap, which could support scra…
Cons:
– Weak seasonal demand and negative forecasts for the real estate and construction…
– Increased competition from billet imports, particularly from Russia, China, Indo…
– Domestic demand in China is not sufficient to absorb high production volumes, le…
– Higher power prices and logistical challenges, such as the new labor law in Japa…
Firm demand still supports China’s ferrous scrap prices
Product Details: Chinese ferrous scrap prices continued strengthening last week, albeit slightly, with steelmakers’ demand for scrap materials expanding further. This trend was observed during the week of September 23, 2024. The firm demand from steelmakers was a key factor in supporting the prices of ferrous scrap.
Pros:
– Firm demand from steelmakers supported the prices of ferrous scrap.
– Expanding demand for scrap materials helped in slightly strengthening the prices…
Cons:
– The price strengthening was only slight, indicating a potentially slow growth in…
– No mention of other supportive factors, suggesting demand might be the sole driv…
China’s steel scrap supply set to rise in Q4, usage to increase
Product Details: Asian steel and scrap prices are expected to be mixed in Q4, influenced by China’s stimulus measures, muted demand, and increased output. Chinese steel exports are projected to reach 100 million mt in 2024, the highest since 2016, due to weak local demand and high production. Hot-rolled coil (HRC) prices in Asia have been volatile, with prices falling to a seven-year low in Q3 before a slight rebound. Ferrous scrap prices have also been under pressure due to weak downstream demand and competition from cheap billet imports.
Pros:
– Potential support for scrap prices in Q4 due to logistical constraints and highe…
– Higher-than-expected Kanto H2 scrap tender price and Taiwan’s container trucking…
Cons:
– Muted demand and increased output are expected to weigh on steel prices despite…
– Growing protectionist measures against Chinese steel exports could further press…
– Competition from billet imports, particularly from China, Russia, and other coun…
– Seasonal factors such as high temperatures and heavy rains in southern China may…
Chinese billet exports hit scrap demand
Product Details: The article discusses the impact of Chinese billet exports on the global ferrous scrap market. Chinese billet exports have increased significantly, affecting scrap demand particularly in Türkiye and other Asian markets. In August, Turkish import scrap prices dropped sharply due to attractive billet offers from China. The Platts assessment for Turkish bulk imports of premium heavy melting scrap 1/2 (80:20) fell to US$ 363.50 per tonne CFR in late August, down from US$ 388 on 31 July. Chinese billets are priced competitively, with offers as low as $450/mt FOB China, making them an economical alternative to scrap for many steel
mills.
Pros:
– Competitive pricing: Chinese billets are offered at significantly lower prices,…
– Economical alternative: The price spread between billet and scrap has narrowed,…
– Increased supply: Chinese mills have increased their production of billet, provi…
Cons:
– Impact on scrap prices: The influx of cheap Chinese billets has led to a sharp d…
– Market instability: The increased competition from billet imports has caused ins…
– Overcapacity concerns: The high production volumes in China relative to domestic…
Scrap Metal prices in China, Shanghai, Guangzhou …
Product Details: The website provides scrap metal prices in China, specifically for cities like Shanghai, Guangzhou, Tianjin, Shandong, and Henan. The prices are listed for various types of scrap metals, including Bare Bright Copper (Cu >99%), No. 1 Copper (Cu 96-98%), No. 2 Copper, Yellow Brass, Lead, Soft Lead, Zinc, and Zinc Die Cast. For example, the price of Bare Bright Copper is 47,750 CNY/MT, No. 1 Copper ranges from 47,100 to 49,000 CNY/MT, and Yellow Brass is priced at 32,700 CNY/MT across all listed cities.
Pros:
– Provides up-to-date and region-specific scrap metal prices in China.
– Covers a wide range of scrap metal types, including copper, brass, lead, and zin…
– Prices are consistently listed across multiple cities for comparison.
Cons:
– The prices may fluctuate frequently, requiring constant updates to remain accura…
– The website does not provide historical price data or trends for long-term analy…
– Limited to scrap metal prices and does not offer additional market analysis or i…
China’s government establishes state-owned recycling …
Product Details: China Resources Recycling Group (CRRG) is a newly established centrally administered state-owned enterprise (SOE) specializing in resources recycling and reuse. It is based in Tianjin with a registered capital of 10 billion RMB (€1.3bn). The company aims to build a national platform for resource recycling, integrating functions such as warehousing, processing, distribution, trade-in, and standard setting. CRRG will focus on recycling various materials including scrap steel, non-ferrous metals, waste plastics, electronic products, batteries from new-energy vehicles and electric bicycles, and decommissioned wind power and photovoltaic equipment.
Pros:
– CRRG will contribute to ensuring national resource security and promoting high-q…
– The company will support large-scale equipment upgrades and consumer goods trade…
– CRRG will drive standardization and orderly development of the recycling industr…
– The company’s activities are expected to solve environmental pollution issues an…
Cons:
– There is uncertainty among market participants due to a lack of details on the c…
– Tight supply and weak downstream sectors may limit the upside potential in the s…
– The impact on the market is still unclear, and it may take time to see the full…
China | ReMA
The growing importance of steel scrap in China
Comparison Table
| Company | Product Details | Pros | Cons | Website |
|---|---|---|---|---|
| China increases its presence in the US scrap sector in 2023 | The U.S. exported various types of recycled metals in 2023. Copper-bearing scrap was the most extensively exported, with over 875,000 tons exported, n… | – Increased demand for recycled copper scrap from China, with a 12% increase in ex… – Growth in aluminum scrap exports to various countries, includi… | – Decline in recycled steel exports by 9.2% compared to 2022. – Reduced purchases of U.S. recycled steel from key markets like Mexico, India, Ba… -… | www.recyclingtoday.com |
| China steel exports hitting scrap markets | Chinese exports of semi-finished and finished steel products have increased significantly, impacting the global long steel industry. In 2022, these ex… | – Attractive prices for Chinese billet are providing Turkish mills with a cheaper… – The availability of cheaper Chinese steel products is helping t… | – The influx of Chinese steel exports is destabilizing the global long steel indus… – The increased competition from Chinese exports is forcing othe… | recyclinginternational.com |
| TRADE REVIEW: Asian steel, scrap brace for mixed Q4 on … | Asian steel and scrap markets are facing significant challenges due to weak demand, particularly in the property and construction sectors. Scrap price… | – India’s steel consumption is expected to grow 7.5% over 2023-24, driven by a ris… – Arbitrage opportunities may arise in Q1 as the spread between… | – Weak seasonal demand and negative forecasts for the real estate and construction… – Increased competition from billet imports, particularly from R… | www.spglobal.com |
| Firm demand still supports China’s ferrous scrap prices | Chinese ferrous scrap prices continued strengthening last week, albeit slightly, with steelmakers’ demand for scrap materials expanding further. This… | – Firm demand from steelmakers supported the prices of ferrous scrap. – Expanding demand for scrap materials helped in slightly strengthening the pric… | – The price strengthening was only slight, indicating a potentially slow growth in… – No mention of other supportive factors, suggesting demand migh… | www.mysteel.net |
| China’s steel scrap supply set to rise in Q4, usage to increase | Asian steel and scrap prices are expected to be mixed in Q4, influenced by China’s stimulus measures, muted demand, and increased output. Chinese stee… | – Potential support for scrap prices in Q4 due to logistical constraints and highe… – Higher-than-expected Kanto H2 scrap tender price and Taiwan’s… | – Muted demand and increased output are expected to weigh on steel prices despite… – Growing protectionist measures against Chinese steel exports co… | www.spglobal.com |
| Chinese billet exports hit scrap demand | The article discusses the impact of Chinese billet exports on the global ferrous scrap market. Chinese billet exports have increased significantly, af… | – Competitive pricing: Chinese billets are offered at significantly lower prices,… – Economical alternative: The price spread between billet and scr… | – Impact on scrap prices: The influx of cheap Chinese billets has led to a sharp d… – Market instability: The increased competition from billet impo… | recyclinginternational.com |
| Scrap Metal prices in China, Shanghai, Guangzhou … | The website provides scrap metal prices in China, specifically for cities like Shanghai, Guangzhou, Tianjin, Shandong, and Henan. The prices are liste… | – Provides up-to-date and region-specific scrap metal prices in China. – Covers a wide range of scrap metal types, including copper, brass, lead, and… | – The prices may fluctuate frequently, requiring constant updates to remain accura… – The website does not provide historical price data or trends f… | www.scrapregister.com |
| China’s government establishes state-owned recycling … | China Resources Recycling Group (CRRG) is a newly established centrally administered state-owned enterprise (SOE) specializing in resources recycling… | – CRRG will contribute to ensuring national resource security and promoting high-q… – The company will support large-scale equipment upgrades and co… | – There is uncertainty among market participants due to a lack of details on the c… – Tight supply and weak downstream sectors may limit the upside… | www.recyclingtoday.com |
| China | ReMA | |||
| The growing importance of steel scrap in China | www.mckinsey.com |
