Home > Metal News > Experts Predict China Metal Recycling Industry Poised For Growth

Experts Predict China Metal Recycling Industry Poised For Growth

Pin It DMCA.com

by - 5/21/2009 8246 Views

Chinese Scrap demand mak an U turn

chinese-flag.jpgThe scrap metal industry was hit hard by the recession that started in the last quarter of 2008. It affected China like the other countries. Incidentally, China happens to be the biggest user of copper in the world. However, the Metal recyclers of China who closed down operations are considering resuming operations. The change in mindset has been caused by rising prices. This was revealed by an industry official.

After October 2008, the majority of the metal recycling industry of China came to a halt. The market was replete with rumor that the recession will affect the demand of copper. This caused the price of copper to plunge downwards.  However, 2009 has brought some good news for the recession hit industry. In London, Copper has gained more than 50 percent this year.

China increased the amount of import considerably post a stimulus package worth $585 billion. As a matter of fact, China depends mostly on imports for meeting its scrap needs. The shipments in 2009’s first quarter dropped from the position of earlier year since availability was affected by the recession. In China scrap is used as the raw material for smelting. It is used in making a significant part of copper produced in the country.

In last year, China used 600,000 metric tons of copper scrap that was domestically sourced. It also imported 5.6 million tons of the metals in 2008. The China Nonferrous Metals Industry Association’s deputy secretary general Zhai Xin said in his statement that as the western world is still to recover from the economic meltdown, China can not count much on foreign scrap.
Around 40 percent of the copper demand of the world is met by means of recycling. This makes sense as recycling is more affordable than digging ores from mines. This fact has been confirmed by the Bureau of International Recycling. Last year the Copper prices in London nosedived and a 66 percent decline was observed.

Zhai Xin expressed his hope about the possibility of the reopening of the China based metal recyclers who shut down operations after the recession. The Beijing's stimulus package has come as a rescuer to the scrap metal industry of china. It has acted as the potent force behind the double imports of copper in the first quarter of the present year. It was between July and December that the prices of Copper hit rock bottom. But a reverse trend was observed in January 2009.

The encouraging statement of the Association’s deputy secretary general has come at the right time for the scrap metal industry people. As of now, the premiums for the top grade copper scrap prices in London Metal Exchange are in the range of $200 and $250.

Category : Metal

Tags : Metal Scrap,

Share this news
About Linda

Linda Saha, born at Sydney, Australia on Nov 1974 is an active environmentalist and publisher of various environmental journals. She is a member of several Environmental and Recycling groups. .... more info


Be the first to post a comment.