THE country plans to increase its use of steel scrap by 23 percent to 320 million tons by 2025 and to increase production of recycled nonferrous metals, in an effort to ensure supplies and to meet the country’s climate commitments.

The world’s top metals consumer will boost its recycled nonferrous output to 20 million tons in the next five years from 14.5 million tons in 2020, the National Development and Reform Commission (NDRC) said yesterday.

That includes targets of 4 million tons of recycled copper, 11.5 million tons of recycled aluminum and 2.9 million tons of recycled lead, the country’s top economic planner said in a statement.

The NDRC also vowed to raise the substitution rate of renewable resources to primary resources and to enhance utilization of low-grade ores, tailing dams and other resources.

China’s steel scrap usage was around 260 million tons in 2020, which could replace 410 million tons of 62 percent iron ore input, said the NDRC.

The country brought in more than 1 billion tons of iron ore per year, accounting for more than 80 percent of its total consumption.

Surging global metals prices have driven up producer price inflation in China this year, prompting authorities to take numerous steps to tamp down speculation. Prices for iron ore with 62 percent iron content for delivery to China have jumped 38 percent so far in 2021.

“The global supply chain had been seriously shocked by non-economic factors, increasing uncertainty of supplies… had posed a major challenge to China’s resource security,” said the NDRC.

The plan will also help the country to meet its carbon peak and carbon neutrality goals, according to the statement.

The ferrous sector contributes about 15 percent to China’s total carbon emissions while the nonferrous industry accounts for about 4.7 percent.

(SD-Agencies)