China Steel Scrap and EAF News Roundup

SHANGHAI, Apr 8 (SMM) –This is a roundup of the trending news across the Chinese steel scrap and EAF sectors throughout the month.

Policies for steel industry in the context of carbon peaking and neutrality

The National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) will organize a countrywide inspection of steel capacity cut and crude steel output reduction in 2021, promoting high-quality development of the steel industry. 

This inspection will be carried out in three stages. Firstly, all provinces are to carry out inspections in their respective regions. Relevant members of the inter-ministerial joint meeting organise timely on-site guidance. After the self-examination and self-correction are completed, the relevant members of the inter-ministerial joint meeting will carry out on-site inspections. A summary report will be submitted, according to the self-examination and on-site inspections. 

The reduction of crude steel output in 2021 will be based on consolidating and improving the results of steel de-capacity, while maintaining the continuity and stability of the supply-side structural reform policy of the iron and steel industry, adhering to principles of marketization and rule of law, and reduce crude steel output at steel makers which showed poor performance in environmental protection and had high energy consumption.

Malaysia imposed a 15% export tax on steel scrap

Malaysia announced on March 19 a 15% export tax on steel scrap to maintain the number of local steel manufacturers. The export tax will be applied to steel scrap with customs codes of 7204.10.0000, 7204.29.0000, 7204.30.0000, 7204.41.0000 and 7204.49.0000, and will take effect on March 25.  

In addition, the Malaysian government has also promised to implement stricter standards on licenses issued to steel scrap processing enterprises. Only consumers with production licenses can import steel scrap, while traders cannot. Last year, Malaysia's steel scrap exports exceeded 450,000 mt, a year-on-year increase of 13%, most of which were sold to India, Indonesia and Singapore, according to customs data. 

Meanwhile, Malaysia is still a net importer of steel scrap in 2020, with its steel scrap imports rising 65% year on year to 2.32 million mt in the first eleven months of 2020. The top three suppliers were the United States (1.56 million mt), Japan (550,512 mt) and Australia (77,711 mt).

First batch of 2000 mt of secondary steel raw materials cleared customs

Recently, the first batch of secondary steel raw materials purchased by Ansteel Group International Economic and Trade Company from Japan passed the inspection and quarantine of Dalian Customs. This is the first batch of secondary steel raw materials after the national standard of “Secondary Steel Raw Materials" (GB/T39733-2020) issued by the State Administration for Market Regulation took effect on January 1 this year. 

SMM learned that after confirming that qualified secondary steel raw materials are not solid waste and can be freely imported, Anshan Iron and Steel International Trade Corporation and its raw material trading department signed an agreement of 2,000 mt of heavy secondary steel raw materials with Japan’s Hanwa after considering quality, prices and shipping schedules. The logistics department of the company and the port company continued to strengthen communication and consultation with Dalian Customs, and tracked the whole process, ensuring the smooth customs clearance of the batch of goods at Dalian Customs on March 19.

For more information on the China steel scrap and EAF sector, please subscribe to China Steel Scrap & EAF Monthly.