On May 14, 2026, the 17th China International Metal Recycling Conference and the 7th Executive Council (Expanded) Meeting of the China Association of Metal Scrap Utilization (CAMU) were grandly held in Hefei, Anhui Province. The event was guided by the China Iron and Steel Association (CISA) and co-organized by CAMU and the Metallurgical Branch of the China Council for the Promotion of International Trade (CCPIT). Under the theme “Promoting High-Quality and Standardized Development of the Steel Scrap Industry,” the conference brought together nearly 400 participants, including representatives from the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), industry associations, domestic and international steel enterprises, scrap steel processing equipment suppliers, and trading companies. Together, they explored the challenges and opportunities along the global metal recycling industry chain, injecting new momentum into the green transformation of the steel industry and international cooperation.
I. Policy Guidance: Balancing Supply and Demand, Strengthening Standardized Development
At the conference, Jiang Peng, Fourth-Level Research Associate of the Resource Comprehensive Utilization Division, Department of Energy Conservation and Resource Comprehensive Utilization, MIIT, pointed out that the comprehensive utilization of steel scrap is of great significance to ensuring national resource security and reducing carbon emissions in the steel industry. During the 15th Five-Year Plan period, China will further deepen standardized management of the steel scrap processing industry, accelerate the promotion of advanced technologies and equipment, and improve the standards system, driving the industry’s transformation from scale expansion to quality improvement.
Luo Tiejun, Standing Committee Member and Vice President of CISA, emphasized in his analysis of the industry situation that the steel industry currently faces the challenge of “strong supply and weak demand.” He called for adherence to the “three determinations and three avoidances” operating principle and market stabilization through self-disciplined production control. He specifically noted that a scrap resource recycling system has been preliminarily established, becoming a key pillar of green steel development. He pointed out three areas for improving the environment:
Complying with policies for standardized operations and accelerating enterprise upgrades toward standardization;
Improving fiscal and tax policies to ensure fair competition and remove bottlenecks in resource circulation;
Enhancing scrap steel quality through high-value processing to strengthen industrial chain resilience.
These policy signals have set a clear direction for steel trading enterprises: compliance and standardization will be critical prerequisites for participating in international resource trade.
II. Data Insights: Short-Term Pressure on Scrap Demand, Continuous Optimization of Import Structure
In his report, Feng Helin, Party Branch Secretary, Vice President, and Secretary-General of CAMU, disclosed key data:
In the first quarter of 2026, total steel scrap consumption in China reached 50.46 million tons, a year-on-year decrease of 12.4%; comprehensive scrap consumption per ton of steel was 203.9 kg, down 8.3% year-on-year.
On the import front, 79,300 tons of recycled steel raw materials were imported in the first quarter, a year-on-year increase of 33.25%. Major source countries were Japan (48.60%), South Korea (13.09%), and Thailand (11.33%). For the full year of 2025, imports totaled 273,300 tons, up 10.28% year-on-year, with Japan, South Korea, and Malaysia as the main suppliers.
The data indicates that while domestic scrap demand is undergoing short-term adjustments, imported resources are playing an increasingly important supplementary role, particularly high-quality recycled steel raw materials from East Asia. For steel trading enterprises, expanding import channels for high-quality scrap from Japan, South Korea, and other countries can help domestic steel mills optimize raw material structures to meet low-carbon steel production needs.
III. Global Perspective: Scrap Steel as a Strategic Resource, Changing International Trade Patterns
Zhong Shaoliang, Deputy Director General of the World Steel Association, noted in his report that the low-carbon transformation of the steel industry has become a global consensus, though decarbonization challenges remain significant. As a core raw material for low-carbon steelmaking, scrap steel has become a “strategic resource.” However, issues such as insufficient supply of high-quality scrap and rising trade barriers are becoming increasingly prominent. For instance, policies like the EU Carbon Border Adjustment Mechanism (CBAM) may further affect the cross-border flow of scrap.
Dr. Kim Chang-do of POSCO Research Institute provided further refined analysis, predicting that high-grade scrap steel will face long-term supply shortages, while low-grade scrap may become oversupplied after 2030. This trend highlights the need for trading enterprises to focus on global sourcing strategies for high-grade scrap while tracking green trade policies in various countries to mitigate supply chain risks.
Robin Wiener, President of the Recycled Materials Association (ReMA) in the United States, called for global industry collaboration via a video presentation, emphasizing that “recycled materials are a shared global industry.” This reflects the urgent international demand for resource recycling cooperation and presents opportunities for Chinese steel trading enterprises to integrate into the global green supply chain.
IV. Industrial Upgrading: Technology Driving Efficiency, Platforms Empowering Ecosystems
Equipment upgrades and intelligent retrofits were another key focus of the conference. Companies such as Hubei Xinwei Machine Tool, Jiangsu Huahong Technology, and Changsha Zhongjin Intelligent Equipment showcased high-efficiency scrap steel processing equipment aimed at reducing costs and improving efficiency through technological upgrades.
Zihuan Lianjin Recycling Resources Co., Ltd. shared its achievements in building a “smart trading service platform.” Using digital technologies, the platform enables scrap traceability, transaction compliance, and supply chain finance integration, setting a benchmark for “digitalization + greening + compliance” in the industry. In addition, Angang Green Industry Development Co., Ltd. proposed the establishment of a regional green circular industry ecosystem to promote collaboration along the industrial chain.
For steel trading enterprises, these innovations present two major opportunities:
Equipment exports: China’s advanced scrap steel processing equipment could expand into overseas markets leveraging the Belt and Road Initiative.
Digital services: Cross-border resource platforms can integrate domestic and international scrap supply and demand, improving trade efficiency and transparency.
V. Special Topics: Tax Optimization and Standardization to Facilitate Industry Flow
During a tax policy symposium, “reverse invoicing” became a hot topic. The State Taxation Administration plans to improve supporting services to reduce the prepayment burden on natural persons selling scrap, which is expected to activate the fragmented scrap recycling market and expand resource supply.
Regarding standardization, the association will accelerate revisions to the national standard for steel scrap and promote product classification and full-process traceability systems. Unified standards are the foundation for breaking down trade barriers, enabling mutual product recognition between domestic and international enterprises, and facilitating efficient circulation of scrap resources nationwide and globally.
VI. Action Recommendations for Trading Enterprises
Based on signals from the conference, steel trading enterprises can focus on the following areas:
1.Expand high-quality scrap import channels: Deepen cooperation with Japan, South Korea, Southeast Asia, and other regions to establish stable procurement networks for high-quality scrap.
2.Monitor policy compliance: Stay aligned with domestic standardized management and international carbon trade mechanisms (e.g., CBAM) to proactively mitigate trade risks.
3.Engage with digital ecosystems: Connect with industry platforms like Zihuan Lianjin to leverage data traceability and enhance cross-border trade credibility.
4.Explore equipment export opportunities: Promote China’s advanced scrap processing technologies and intelligent equipment to Belt and Road countries.
5.Strengthen industry collaboration: Work with steel mills and scrap processors to promote mutual recognition of standards globally and facilitate the globalization of resource recycling.
The 17th China International Metal Recycling Conference showcased the steel scrap industry’s commitment to transitioning from “scale expansion” to “quality-based win-win.” Driven by green development and the “dual carbon” goals, scrap steel is no longer just a raw material but a strategic pillar for the sustainable development of the steel industry. For steel trading enterprises, proactively embracing compliance, digitalization, and globalization will be key to seizing opportunities in this resource revolution and helping China’s steel industry achieve steady and long-term growth amid the wave of circular economy.
Further Reading: The conference simultaneously released interpretations of the “Action Plan for Promoting the Application of Recycled Materials” and global scrap supply-demand outlook reports. For more information, please contact CAMU or follow subsequent reports from China Metallurgical News.
