China – China’s vehicle trade-in programme ran smoothly during the first three quarters of this year – although its benefit to the scrap industry will not be felt immediately, reckons the country’s Ministry of Commerce (MofCom).
Some 36 000 vehicles were traded in during September, equivalent to a month-on-month increase of 50%. During the January-September period, 250 000 vehicles were traded in, with the programme generating new vehicle sales worth a total of RMB 28.6 billion (US$ 4.3 billion), it is noted in a report carried by Steel Business Briefing.
The vehicle trade-in programme will undoubtedly give an impetus to vehicle scrapping and thus increase steel scrap supply in China, according to MofCom. ‘Although the scrap industry is expected to benefit from the vehicle trade-in programme, it is hard to predict how much steel scrap can be recycled through the programme in this year since there is a delay between the time when a vehicle is traded in and when it becomes scrap,’ explains a ministry official. ‘Hence, the quick development of the programme in this year may show its effect to the scrap industry in the middle of next year.’
According to MofCom data, some 4 million vehicles were scrapped in China last year.
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