The China Metal Information and Standardisation Institute (CMSI) has proposed a revision to the national recycling steel material standard, which may result in more scrap imports if the proposal is implemented.
The draft revision of the current standard GB/T 39733-2020 was released today, following extensive discussions among authorities and key market participants. It includes seven major amendments to existing standards and addresses grade specifications, mixed composition, and inspection requirements for impurity standards, chemical contents, and size. The revision also invited public feedback and will remain open for feedback until 15 June.
China's scrap imports have averaged around 550,000 t/yr over the past three years, significantly lower than anticipated after the import ban was lifted on 1 January 2021, according to CMSI. Current stringent standards and import inspections have been curbing scrap imports, which has hindered Beijing's plan to expand its electric arc furnace-based steelmaking capacity given finite domestic scrap supply.
Chinese authorities initiated a review of ferrous scrap import standards at the end of 2023 to raise imports and optimise the use of seaborne scrap resources.
China currently primarily imports prime-grade scrap from Japan, the US, and sometimes Europe. But light scrap and mixed composition cargoes still make up the majority of scrap cargoes in the seaborne market. Many scrap traders have remained hesitant to export to China because of the strict requirements.
Chinese buyers will be able to import H2 and H1/H2 50:50 from Japan and HMS 1/2 80:20 from the US or Europe, if the revised standard is approved. CMSI believes this will aid Chinese steelmakers in importing recycling materials to meet demand as part of their decarbonisation efforts.
| Proposed revisions of China recycling steel material standards | |
| No. | Revision |
| 1 | Add grade LRS304 for light recycling steel material with thickness below 2mm |
| 2 | Allow mixed composition in "HRS101, MRS201, LRS301, LRS304" or "HRS102, MRS202, LRS302, LRS303" |
| 3 | Change impurity levels from "no more than 0.3pc, 0.8pc, and 1.0pc" to "no more than 1pc, 1.5pc, and 2.0pc" |
| 4 | Reduce each inspection lot from not less than 300t to 30t |
| 5 | Allow mixed loading in vessels |
| 6 | Change "copper content not exceed 0.3pc" to "copper content not exceed 0.3pc in unalloyed recycling steel" |
| 7 | The recycling steel with size above maximum requirement should not exceed 5pc of total amount |
| Source: CMSI | |
