The 143 ferrous-scrap collecting and recycling enterprises MIIT has named represent the tenth batch of companies securing official approval since MIIT began certifying collectors and processors in 2013.
MIIT said in its December 16 announcement that besides the 143 newly added scrap companies, it had also removed 21 scrap suppliers this time from its list of approved enterprises. It gave no detailed reason for their disqualification.
In the meantime, the total number that the ministry has approved to date stands at 584, as reported. Consequently, this latest group of newly qualified supplies takes the number of scrap collecting and recycling enterprises the central government has recognized to 706, Mysteel Global noted.
The government’s endorsement of additional qualified scrap suppliers was in line with the country’s 14th Five-Year Plan for the steel scrap industry, which stipulates that China’s qualified steel scrapyards need to host 200 million tonnes/year of processing capacity by 2025 to satisfy the country’s growing need for scrap, as reported.
For now, the 584 scrapyards approved by MIIT through nine batches are operating around 137 million t/y of processing capacity in total, according to Mysteel’s assessment.
China’s scrapyards have been more active to gaining MIIT certification this year, and not just in response to central government encouragement. Successful applicants can enjoy a number of preferential policy benefits, the most attractive of which is a substantial refund of up to 30% on their VAT payments, Mysteel Global notes.
Moreover, to help nurture the domestic ferrous scrap industry, the China Association of Metalscrap Utilization has also called for the VAT rebate to be raised to 70% from the current 30%, as reported.
Significantly, the 143 firms securing approval in this latest batch marked the largest number of firms gaining MIIT authorization in a single group since 2013, with the number being 30 more than in the ninth batch certified last year, Mysteel Global noted.
Written by Lindsey Liu, liulingxian@mysteel.com
This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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