The growth of domestic recycling of metals in China has slowed sharply according to the chairman of one of the leading recycling bodies in the country.
Over the past three quarters, the output of secondary non ferrous metals has been 5.9 million tonnes, which means that the country is likely to output 8 million tonnes throughout 2011. This is a growth of 3 per cent compared to last year, but is significantly down on the average 20 per cent growth seen each year in the past decade.
China Non Ferrous Metals Association Recycling Metal Branch chairman Wang Jiwei said: “A widely fluctuating international price and the continued domestic tightening of regulation policy are to blame for the declining output and the harsh business environment for non ferrous metal enterprises.”
He added that VAT rebates for metal firms had also been cancelled and that a decline in international metal prices meant that many recyclers in the country had been operating at a deficit in the past two months.