Manufacturing News

China's scrap steel exports soar in 2017

China's scrap steel exports soared in 2017 as domestic demand was dampened, according to data from an industry association.

The country exported 2.2 million tonnes of scrap steel last year, compared with just around 1,000 tonnes in 2016, according to the China Iron and Steel Association.

The surge came despite a 40-percent tariff on scrap steel exports as millions of tonnes of such steel was kept out of the domestic market due to a ban on the production of "ditiaogang," or steel made from scrap metal.

Most exports went to Southeast Asian nations such as Indonesia, Thailand and Vietnam. The biggest sources of exports were eastern and southern coastal provinces including Guangdong, Jiangsu, Zhejiang, Fujian and Hainan.

China phased out the production of 140 million tonnes of "ditiaogang" last year as part of efforts to reduce excessive capacity in the steel sector.

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