Home / Metal News / Li Shilong: renewable lead raw materials, tax policy, construction of recovery system, pollution and other problems need to be solved urgently.

Li Shilong: renewable lead raw materials, tax policy, construction of recovery system, pollution and other problems need to be solved urgently.

iconApr 3, 2019 10:10
Source:SMM

In recent years, especially from 2018 to this year, with national environmental inspection, environmental protection looks back and the State Council on winning the Blue Sky War three-year action plan. The intensity of environmental protection law enforcement has been unprecedented, and the illegal incidents of lead pollution have been exposed one after another, leading to the increasing attention of our government departments and all sectors of society to the recovery of waste lead-acid batteries and the problems in the production of enterprises. Various government departments have issued a series of policies and measures to further strictly regulate the whole process of recovery and utilization of waste lead-acid batteries and the production of recycled lead enterprises. At the 2019 (14th) Shanghai lead and Zinc Summit hosted by Shanghai Nonferrous Network, Li Shilong, chairman of the Strategic Alliance for technological Innovation of China's Renewable Resources Industry and vice president of the recycled Metals Branch of the China Nonferrous Metals Industry Association, said, This has a certain impact on the production and management of China's recycled lead industry, but it is a good thing for the long-term healthy and orderly development of the industry. On the whole, in the past two years, the recycled lead industry has still maintained a steady and upward operation, and the industrial structure is in a period of deep adjustment. China's recycled lead industry has become a consensus and has made positive progress.

According to incomplete statistics, China produced about 2.8 million tons of recycled lead in 2018, of which 2.1 million tons were produced by enterprises above scale, a new increase compared with 2017.

The raw materials of China's recycled lead industry are mainly waste lead-acid batteries. Since China is a party to the "Basel Convention" and prohibits the import of waste lead-acid batteries, all raw materials for recycled lead come from China. According to the investigation and analysis of the Renewable Resources Innovation Alliance, In 2018, the theoretical scrapping amount of lead-acid batteries in China is about 9 million tons.

From the point of view of the past two years, the overall operation of China's recycled lead industry is relatively stable, the price is rising steadily, and enterprises are more or less profitable. with the new requirements of environmental protection and ecological construction, recycled lead has made positive progress in policy trend and industrial upgrading. On the one hand, many government departments pay attention to the construction of waste lead-acid battery recovery system, and are studying relevant schemes and measures; On the other hand, a number of technical renovation and expansion projects are about to be put into production, and the production capacity has been further optimized. after the consumption tax on lead-acid batteries is levied at the rate of 4%, the battery production enterprises have been under greater pressure. In order to implement the extended producer responsibility system and participate in the recovery of waste lead-acid batteries, it has triggered a new round of cooperation and layout between recycled lead enterprises and battery manufacturers in the field of recycling.

Analysis on the characteristics of recycled lead Industry

In recent years (especially in the past two years), under the dual influence of policy and market, the recycled lead industry has continued to speed up the adjustment of industrial structure. In order to improve the ability of resource protection and control, some leading enterprises have increased investment and accelerated the construction of the recovery system. Some small businesses are constrained by environmental protection, capital and technology, and production is shrinking or merging. As the relevant state departments have stepped up law enforcement against environmental pollution crimes, there has been a marked increase in the number of criminal cases of illegal disposal of waste lead-acid batteries, which has played a supporting and escort role in the healthy development of the industry.

According to the investigation and statistics of the strategic alliance of technological innovation in China's renewable resources industry, there are more than 30 recycled lead enterprises in China, and these enterprises are roughly divided into three categories: the first category is a single enterprise engaged in the production of recycled lead. This is the main force of recycled lead enterprises (New year Xing); The second is battery production enterprises holding (Nandu, Huabin) or self-built recycled lead enterprises (Tianneng); the third is not only engaged in primary lead smelting but also the production of recycled lead enterprises (Yuguang, Minshan).

 

China's recycled lead enterprises are mainly distributed in Henan, Anhui, Guizhou, Jiangxi, Hebei, Guangdong and other places. After 2016, renewable lead enterprises in Jiangxi, Liaoning, Fujian, Inner Mongolia and other places have invested and built factories one after another. New projects in Yunnan, Guangxi and Guizhou have become new industrial agglomeration areas with characteristics (wet smelting). Chenzhou, Hunan will be a new type of active area of recycled lead, where the lead index is 160000 kg, and large state-owned enterprises will step in.

In the area of lead-acid battery consumption, China sold 28.81 million cars, 17.1 million motorcycles and 33.2 million electric bicycles in 2017. By the end of last year, China had about 300m motor vehicles (200m of them), 260 million electric bicycles and 60 million electric tricycles, and the output of lead-acid batteries in China was about 210 million KVA. Thus it can be seen that the recovery of waste lead-acid batteries in China will continue to increase (including lithium batteries).

 

At present, as the largest downstream consumer goods of lead, lead-acid batteries in China still have a good demand prospect. China is the largest producer and consumer of refined lead in the world. The industrial structure of resources dominated by domestic primary lead will soon change greatly, and the regenerated lead will be further developed. Especially in the situation of rapid and steady economic development in China, in the fields of transportation, manufacturing, communications, aviation, new energy and so on, the consumption of lead-acid batteries will continue to grow in the future, and the market prospect and space of renewable lead will be broad.

Outstanding problems in the Development of recycled lead

The outstanding problems faced by the production and management of recycled lead enterprises in China are still concentrated in two old problems: first, the problem of raw materials, the lack of supervision of the flow of waste lead-acid batteries, and the inflow of a large number of resources into illegal production points without environmental protection facilities. Recycled lead enterprises are facing vicious competition in raw material procurement; Second, the issue of tax policy, in the case of 30% refund of VAT, the comprehensive tax burden of recycled lead enterprises is close to 12%, the tax burden is very heavy, and it is difficult for formal legal enterprises (regeneration) to operate.

In addition to the two old issues of recycling raw materials and tax policy, there are several other issues of concern:

1. The construction of recovery system is an important subject of recycled lead industry.

The disorder of recovery has always been an important issue affecting the recycling of waste lead-acid batteries. The recovery channel is chaotic and there are no vendors to bid up the price, which not only pollutes the environment in the recovery process. Moreover, a large number of resources have flowed into illegal production enterprises and formal recycled lead enterprises are facing difficulties in purchasing raw materials. At present, the number of illegal recycled lead three non-enterprises in China far exceeds that of legitimate recycled lead enterprises, directly resulting in tax losses of more than 10 billion yuan. In view of this situation, most recycled lead enterprises hope to get rid of the passive situation of raw material procurement. In the field of recycling system construction, the willingness to develop is relatively strong, and gradually promote the exploration of upstream and downstream cooperation.

2. The pollution of lead-acid batteries has been banned repeatedly, which is of great concern to the state and the people.

For a long time, due to the unhealthy recovery system, lead pollution incidents occur frequently, and heavy metals pollute a large area of land, farmland and river water, which has become the focus and difficulty of environmental safety supervision related to heavy metal pollution. Since the beginning of this year, environmental protection and public security have stepped up the crackdown and severely dealt with five cases of illegal waste lead-acid battery waste liquid in Jiangxi Yifeng Industrial Park, Ningxia Lingwu Recycling Park, and Nantong, Jiangsu Province. Shanxi cracked down on criminal gangs that illegally disassembled, melted and sold lead ingots. In addition, similar problems have been investigated and dealt with in Anhui, Henan, Shandong, Hebei, Fujian and Gansu. In fact, in order to standardize the recovery and treatment of waste lead-acid batteries, in recent years, the relevant national departments have issued a variety of policies and measures. However, the disorder of the waste lead-acid battery recovery industry is still serious.

3. Who will be in charge of the current situation of lead-acid batteries?

What is the crux of the "crux" affecting the healthy and orderly development of recycled lead (waste lead-acid battery recovery) in China? some say that the recovery system is a problem, some say that it is a tax problem, and some say that the legal system is weak in cracking down on it. However, in any case, it is the most important problem to solve the problem of making formal and legal enterprises become the main body as soon as possible.

Li Shilong believes that there are no problems that cannot be solved in China's industrial development, as long as government departments are determined to form joint management, the main responsibilities are clear, and the relevant units do not fight alone and work together. It is an "underground industrial chain" with the ability to eradicate the extracorporeal circulation of recycled lead, and has normative requirements for the responsibilities of the producers, sellers, users and recyclers engaged in the recycled lead system as a whole. The establishment of the enthusiasm and initiative of everyone in the recovery system (including publicizing the popular science knowledge and improving the quality of lead-acid batteries) can change the chaotic situation in the recovery system of lead-acid batteries.

A New Model for the Development of recycled lead Industry

1. Garden development

In recent years, the development of recycled lead industry in China has been accelerated in the direction of landscaping. Henan Yuguang Gold and lead Group, Hubei Camel Group, Jiangsu New year Xing, Hebei Shangshang, Anhui Huaxin, Hua Platinum Group, Dahua, Zhejiang Tianneng, Hebei Songhe and other large recycled lead enterprises have planned to build recycled lead parks one after another. And the introduction of downstream lead battery enterprises to form a closed cycle production mode of recycled lead in the park-type industrial agglomeration area, which has played an important role in supporting the development of local circular economy and recycling.

2. Linkage between upstream and downstream of lead-acid battery and recycled aluminum industry

With the deepening of the industry and the demand for deep cooperation, the alliance has assumed the role of a bridge between the upstream and downstream of the industry, the government and enterprises, and the National lead Battery recovery pilot Committee approved by the Ministry of Environmental Protection of the State. The Beijing-Tianjin-Hebei Battery Environmental Protection Industry Alliance, established at the end of last year, covers Tianneng, Chaowei, camel, sail, Yuguang, New year Xing, Rishi, Dongbang, Jin Yusheng, Songhe and other enterprises, including the Nonferrous Metals Industry Association and the Renewable Resources Association. Battery Association, Chemical Power supply Association and other national industry organizations. The establishment of such an institutional framework can directly connect the current situation of enterprises and the market, establish and improve the waste battery recovery system and operating mechanism, and play a unique role in coordinating all parties. As some of the above-mentioned enterprises are listed companies and state-owned enterprises, they have obvious advantages in enterprise scale, technical equipment, environmental protection and so on, and have become an important force in the field of recycled lead.

3. Unified recovery layout and capacity planning

According to the amount of waste and recycled lead treatment and recovery capacity to carry out a unified layout planning. First of all, it is necessary to find out the family background, the quantity and quality of recovery in the provinces of the country are quite different, and the non-compliant enterprises must be eliminated and shut down, so as to reduce the number of enterprises and ensure the quality of operation. We should strengthen the supervision of the transfer process of waste batteries, monitor the whole process of social 4S stores, maintenance points, dealers and battery storage and transfer, and make it clear that the responsible subjects should strengthen the prevention and control of lead pollution.

4. Promoting the convergence of industrial policy, environmental protection policy and fiscal and taxation policy

Broad market prospect and space for recycled lead

In the end, Li Shilong said: China's recycled lead has begun to focus on the direction of high starting point, science and technology, scale, diversification, and capitalization, and the conditions for making China's recycled lead industry bigger, stronger, and more refined have begun to mature. China's renewable lead industry has broad development potential and broad space, to be a world-class renewable lead enterprise, worthy of the confidence of entrepreneurs!

Scan QR code, apply to join SMM metal exchange group, please indicate company + name + main business

Recycled lead
tax policy
recovery
pollution

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All