Chinese authorities are unlikely to lower barriers to allow more lower-grade scrap to enter the country, panelists said at the Singapore Steel Forum 2021 on Wednesday July 14.
China imported
221,409 tonnes of ferrous scrap in the first five months of 2021, according to Chinese customs statistics, which was a 2,894% increase from the same period in 2020.
Most of the material imported has been higher grades,
which are in short supply in international markets, such as heavy scrap (HS) grade HRS 101 and busheling, instead of the more common lower grade shredded and heavy melting steel (HMS) scrap.
Scrap sellers have told Fastmarkets in recent months that import standards in China are too strict to allow HMS grades and most shredded scrap found in the international market, though there are signs of some
easing in inspections on the ground at ports.
Higher grades in greater demand
Kok Jiak Lim, senior trader at China's Zhejiang Metals and Materials Co, said that the Chinese government would not ease import standards to allow lower grades to gain...