China's Ministry of Industry and Information Technology (MIIT), the country's governing body for industrial sectors, announced on November 4 the names of 84 ferrous scrap collecting and recycling enterprises in the latest batch that have just obtained its tentative certification. Public opinions are being sought before formal approval can be conferred, according to the announcement.
This marks the 13th batch of qualified steel scrapyards that the Ministry has nominated annually since it first introduced the criteria for entry into the scrap steel processing industry in 2012. Qualified enterprises can enjoy a number of preferential policy benefits including a substantial refund of up to 30% on their VAT payments, as reported.
Along with the newly nominated enterprises, the MIIT also plans to remove 26 suppliers from the list of enterprises approved in the previous 12 batches, as announced. Assuming all adjustments proceed as planned, the total number of approved scrap recycling companies would increase from the current 919 to 977, Mysteel Global noted.
In the past couple of years, over 100 steel scrap recyclers showed up in the MIIT's list of certified enterprises each year, with 111 in 2024 and 135 in 2023, respectively, as Mysteel Global reported.
However, the number for this year has seen a marked decline, which to some extent reflects that the Chinese government is tightening the review process, focusing more on lifting the capacity utilization of approved enterprises rather than further increasing the total number, Mysteel Global learned.