The China Iron and Steel Association (CISA) has proposed the inclusion of steel scrap in the list of strategically important resources, emphasizing its critical role in achieving green and low-carbon development in the country’s steel sector. This recommendation was presented during CISA’s late-June meetings, where it was noted that current scrap management practices lag behind China’s evolving industrial demands.

CISA suggests incorporating steel scrap into the national five-year economic and social development plan, alongside accelerated industrialization and regionalization of the scrap processing industry. Establishing a robust system for processing, classifying, and distributing scrap tailored to China's metallurgical structure was highlighted as a priority.

Further recommendations include revising income tax accounting for scrap processors, examining preferential VAT policies for imported processed steel inputs, and increasing tax refund rates for furnace materials. These fiscal adjustments aim to enhance the competitiveness of scrap utilization.

Beginning in August 2025, the government will relax restrictions on scrap imports, including approval for mixed grades and battery recycling residues known as “black mass.” Experts forecast that scrap imports could surge to over 1 million tons annually, compared to just 200,000 tons in 2024—still modest beside China’s 1.2 billion-ton iron ore import volume last year.