The Chinese government has announced that it will ease restrictions on scrap metal imports from August this year and allow the supply of battery recycling residues, known as "black mass." This is reported by BigMint.
Changes in the supply of scrap from abroad include a relaxation of quality standards and the permissibility of mixed grades.
According to market experts, thanks to this step, the import of steel scrap into the country may exceed 1 million tons annually, which will be a sharp increase compared to less than 200 thousand tons in 2024. Although this is a positive trend for greener steel production, the volume remains modest compared to the 1.2 billion tons of iron ore imported last year. Most of the ore was used for blast furnaces.
The announced measure will support China's broader decarbonization goals aimed at reducing dependence on iron ore supplies from abroad and promoting more environmentally friendly production methods. The relaxation of scrap import regulations, first introduced in 2021, is expected to accelerate the transition to electric arc furnace-based steel production. The steel industry accounts for almost 15% of China's total carbon emissions, and the industry is now included in the national carbon quota market.
However, even if China increases scrap imports, BigMint notes, the changes are likely to be unnoticeable against the backdrop of the country's annual steel production. Last year, the consumption of these raw materials in China amounted to more than 220 million tons. Therefore, the overall market situation will not change dramatically in the near future. Now the easing of import regulations looks more like a supportive measure.
