Chinese scrap metal regeneration companies to face huge pressure following import ban on more solid waste

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Scrap metal recycling

According to the head of a Chinese metal recycling body, scrap metal regeneration companies in China are likely to face “huge pressure” after the country banned imports on more types of solid waste. 

Reuters reported that the President of the recycling branch of China Nonferrous Metals Industry Association (CNMIA) Shang Fushan told an industry forum that China’s recycled metal output would increase slower, or even decline in the coming years, following the introduction of new rules from the end of 2018. 

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Following China’s ban on imported solid waste from March this year, another 16 products, including scrap copper will be banned next year.  

This is despite the Chinese Government also approving the development of scrap metal regeneration firms in coastal regions of the country.  

According to Reuters, Shang Fushan said: “Due to the tightening regulations on overseas waste imports, these processing firms will be under huge pressure because of a lack of material.” 

He added that the industry depended heavily on imported scrap metals, equalling up to 30-40% of raw material and that these changes would lead to “a further increase in the portion of domestic supply of raw materials”. 

This pressure has made some Chinese companies move to Southeast Asian countries to seek raw materials, but the CNMIA president warned of the “uncertainties” of investing and building factories abroad, said Reuters. 

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