China reduced scrap imports by 5.5% y/y in January-June

In June, this figure rose by 31.4% year-on-year

In the first half of 2025, China reduced its imports of steel scrap by 5.5% year-on-year – to 133,800 tons, according to Kallanish, citing data from Chinese customs.

In June, scrap imports to the country fell by 17.8% compared to the previous month, but rose by 31.4% compared to June 2024, to 19.35 thousand tons.

The leading suppliers of scrap to the country were Japan, South Korea, and Malaysia, with a combined share of 84.2% in January-June.

It should be recalled that at the end of June this year, the China Iron and Steel Association proposed that the government include steel scrap in the list of strategically important resources. It also proposed accelerating the pace of industrialization and regionalization of the scrap processing industry and creating a system for its processing, classification, treatment, and distribution that is adapted to the structure of the country’s metallurgy.

Starting in August this year, the Chinese government will ease restrictions on scrap imports and allow the supply of battery processing residues, known as “black mass.” The changes include a relaxation of quality standards and the acceptance of mixed grades.

As reported by GMK Center, Chinese steel companies reduced steel production by 9.2% year-on-year to 83.2 million tons in June 2025. Compared to the previous month, the figure fell by 3.9%. This is the third consecutive decline in monthly smelting volume, as a result of which, in the first half of this year, steel smelting fell to its lowest level since 2020 – 514.8 million tons (-3% y/y).