Chinese companies expect significant growth in the country's scrap metal market in the coming years. One of the Chinese companies decided to buy the German company Scholz Holding in order to gain the know-how needed to operate in the scrap metal market.
The Chinese Chiho-Tiande Group bought Holding Scholz for a symbolic amount of 1 euro, but operating costs could include hundreds of millions of euros for the Chinese to pay off the company's debt.
Scrap metal recycling is also expected to shape the Chinese steel industry. At the moment, only 25 percent of steel in the country is produced in arc furnaces. This is well below the global average, not to mention leaders such as Turkey, which smelts 72 percent of steel in electric arc furnaces and is currently a major importer of scrap steel in Europe.
Some experts expect that China will become an exporter of scrap metal after a while if a Chinese company enters the global scrap metal market in the European Union. This could facilitate access to the EU steel market, as some scrap metal companies expand easily into steel trading.
China buys German scrap recycling company
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