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China Armco Metals, Inc. Common Message Board

  • omarhatesyoutube omarhatesyoutube Apr 8, 2013 7:46 PM Flag

    CAMU - China to see rising scrap service centers

    Mr Li Shubin vice chairman of China Association of Metal Scrap Utilization gave a brief introduction to Chinese scrap industry in an industry conference on February 28.

    Chinese steel industry consumed 84.00 million tonnes of scrap in 2012, down 7.00 million tonnes from 2011, according to Mr.Li, who added that this is the first fall in consumption in 11 years and negative factors include:
    1. In 2012, Chinese steel industry see decelerating demand growth, substantial losses and weak prices

    2. Scrap prices rose 300-500 yuan/mt due to value-added-tax and that undermined Chinese steel mills’ motivation.

    There are currently 40+ scrap service centers scattering in 28 cities in 19 different provinces that can annually process 25-30 million tonnes of scrap. But the Association expects ~100 scrap service centers with each one designed to process 0.2-1 million tonnes a year and 40-50 million tonnes of capacity in the country till then versus the current 25-30 million tonnes.