China has reduced imports of scrap metal

China's scrap metal imports fell in May this year. The import of steel scrap into the country during May 2015 amounted to 220,000 tons, which is 3.1 percent lower compared to the previous month of this year. China imported 226,900 tons of scrap in April 2015. In addition, imports of scrap metal to China during May 2015 decreased compared to the previous year. The country imported 227,000 tons of scrap steel in the same month last year. Imports were down 3.10 percent year on year.

The country's cumulative scrap metal imports in the first five months of 2015 amounted to 1.06 million tonnes, up nearly 5 percent from imports in the corresponding five-month period from January to May in 2014, when Chinese imports of scrap steel amounted to 1.01 million tons.

During this period in 2015, Japan was the largest exporter of ferrous scrap to China. Scrap imports from Japan to China reached 868,000 tons, accounting for nearly 82 percent of the country's total scrap imports. However, imports of scrap metal from Japan fell 1.5 percent year on year. The second largest exporter of scrap metal to China was the United States. Imports of steel scrap to the country from the United States amounted to 69,000 tons. South Korea came in third with 39,000 tonnes of scrap metal.

Major consumers of scrap metal in East China cut their purchase prices last week amid falling rebar prices. At the same time, the Ministry of Finance and the State Tax Administration of China issued a statement saying that enterprises processing scrap metal will receive a 30 percent discount on value added tax (VAT). The decision was widely welcomed by steel companies across the country. The discount will apply to a wide range of recyclable materials, including metals, plastics and paper. The new rates came into effect on July 1, 2015. The discount will be nearly $ 11.28 per tonne, based on the current market price of scrap metal in China's eastern region.