Page 25 from: April 2005

million tonnes, leaving a ‘gap’ of some 12-15 million
tonnes which should be covered by imports.

Mr Wu warned that, although steel scrap imports
would continue to grow, quality inspection controls
would become stricter. Furthermore, he suggested
that the Chinese authorities should encourage cen-
tralised state buying of scrap instead of continuing
to permit steel companies to do their own purchas-
ing. ‘This would be good for selecting proper scrap
suppliers and might also help to lower freight costs,’
he concluded.

Non-ferrous appetite

‘Starting in 2004, the Chinese government has
been viewing the non-ferrous metals recycling
industry as an independent industry which is of the
utmost importance to the development of our
national economy and therefore should be actively
developed,’ stated Wang Jiwei, Secretary General
of China’s Metal Recycling Branch (CNIA).

To satisfy the country’s booming economy, more
non-ferrous metals were imported in 2004 than in
the previous year. Scrap imports increased by 35% to
5.234 million tonnes, of which copper scrap account-
ed for 3.96 million tonnes (+25% compared to 2003),
aluminium scrap for 1.2 million tonnes (+83.6%) and

zinc scrap for 74 000 tonnes. It goes without saying
that imported scrap metal is the leading raw materi-
al in China’s metal production mix.

According to Mr Wang, Chinese industry would
be dependent on imported scrap until at least 2010.
The Chinese authorities would increase their efforts
to facilitate imports of non-ferrous metals by adjust-
ing currently strict import and tax legislation. After
2010, China expected to collect such large volumes
of its own end-of-life goods that the country would
become far less dependent on imports.

Statistics from the China Non-Ferrous Metals
Industry Association, presented by Deputy Secretary
General Pan Wenju, showed that the country’s metal
production increased again last year. China produced
a total of 40 million tonnes of non-ferrous metals in
2004, including 2 million tonnes of copper, 7 million
tonnes of aluminium, 1.8 million tonnes of lead, 2.5
million tonnes of zinc, and 80 000 tonnes of nickel.
Among the problems faced by China’s non-ferrous
metals industry, Mr Pan highlighted: insufficient
domestic raw material supply; the multitude of tiny
recycling operations which produced only small quan-
tities of low-quality material; the relatively old tech-
nology used in recycling and production processes;
and environmental pollution.

Mr Pan ended his speech with the following
appeal, quoted from the proceedings: ‘China is a
developing country. The development of China
offers a big stage to the developing countries for
their re-development. Development of the devel-
oped countries should contribute to the develop-
ment of the developing countries.’

R E C Y C L I N G I N C H I N A

Recycling International • April 2005 25

China’s hunger for scrap metal is growing year on year.

Randy Goodman, Vice-President Non-Ferrous
of Hugo Neu Schnitzer, enjoys a cigar.

Wang Jiwei, Secretary General of China’s
Metal Recycling Branch (CNIA).

Tom Mele, President of Connecticut Metal
Industries, Inc. gave a speech on North
American aluminium scrap exports to China.

Zhong Bin of China’s State Environment Protection Agency (SEPA).

China attracts the overseas investors
China’s economy is still sky-rocketing. Last year, the country’s economic growth was

almost 10% and, during the first two months of 2005, Chinese factories produced 37%
more electronic goods, textiles, toys and other articles which were exported to the USA,
Europe and Japan. A large proportion of this growth can be attributed to Western com-
panies which have established production plants in China and which are taking advan-
tage of the country’s low-wage and low-tax structure. Last year, these companies export-
ed from China goods worth a staggering US$ 338 billion (€ 256 billion).

During a symposium in Amsterdam last month, Jim Rogers talked at length about
raw materials before an audience of bankers and captains of industry. Co-founder of
the US-based Quantum Hedge Fund with George Soros, Mr Rogers described China as
a country with an excellent infrastructure. And he said: ‘Currently, much is written
about China, but even now many people do not understand that this country will dom-
inate the 21st century.’

Mr Rogers’ advice at the symposium was: ‘Teach all your children and grandchildren
Chinese.’ Putting his money where his mouth is, Mr Rogers has hired a nanny who
speaks to his 21-month old daughter exclusively in Mandarin Chinese.