SHANGHAI China has announced moves to shake up its ferrous scrap industry by gradually eliminating recyclers that dont meet standards, according to Chinas Ministry of Industry and Information Technology (MIIT).
The MIIT will issue a list of companies that meet the industry guidelines, in terms of production capacity, environmental protection, energy consumption, technology and equipment, and will monitor these companies from time to time.
The guidelines require that new ferrous scrap recycling companies should have processing capacities of no less than 150,000 tonnes per year each, while existing recyclers should have processing capacities of no less than 100,000 tonnes per year each by the end of 2014.
To promote industry guidelines and the development of the industry, Beijing is expected to implement certain tax cuts on qualified scrap recyclers. Currently, the tax cut proposal is awaiting regulatory approvals, a source from the China Association of Metal Scrap Utilization (CAMU) told AMM sister publication Steel First.
A version of this article was first published by AMM sister publication Steel First.