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       "This is China application of scrap iron and Steel Association, the 20th anniversary of the establishment of the, I would like to take this as an opportunity to participate in the work of the Association for 20 years the whole process of a member, for many years to offer the association work the enthusiastic support of the old leadership, experts and relevant departments said heartfelt thanks, to express deep respect for the cause of scrap industrious colleagues." Recently, the application of scrap iron and Steel Association, honorary president of Wang Zhenwu when accepting a reporter to interview, first of all to scrap the personage inside course of study expressed greetings, then talk about everyone for steel scrap industry understanding, before when it comes to scrap, everyone's first impression generally is the tattered. However, after 20 years of development, through the Ministry of industry and information technology of the waste iron and steel processing industry access conditions ", let everybody understand to scrap industry is a kind of innovation of new industry, one of the biggest bright spot is to achieve industrialization development."
       Why should promote the scrap industryActually as early as 20 years ago, the former Ministry of metallurgical attached great importance to the iron and steel scrap utilization, scrap industry development and scrap processing and distribution, that scrap as the main raw material of iron and steel, should achieve the standardization of products supply. Considering this, the former Ministry of Metallurgical first metal recycling companies and recycling of metal office was established, the subsequent establishment of the national metallurgical scrap intelligence network. On this basis, approved by the Ministry of metallurgical industry in 1993, in 1994 by the Ministry of Civil Affairs formally incorporated the Chinese application of scrap iron and Steel Association, association of the work is also a consistent commitment to scrap processing industry development.
       For the application of scrap, Wang Zhenwu introduced said: "scrap in substitute for iron ore, energy conservation and environmental protection have a great advantage."
       From iron and steel production resources, China has proven iron ore reserves of about about 20000000000 tons, the annual production of about 15 tons, but due to the low grade of domestic ore, only to meet the demand of 40% tons per year, the other 60% rely on foreign imports. The global iron ore reserves of about 1700 tons. Annual production of about 23 tons. As a result, we can see that the primary resource is limited, and it can be seen from the current proven iron ore reserves in China, which can be used for a limited period of time.

       At present, China's iron and steel has more than 60 tons of savings. The annual domestic output of more than 1.6 tons of scrap steel, scrap steel domestic mainstream annual consumption of about 80000000 tons. Therefore, many steel mills use scrap can save the amount of iron ore, reduce domestic iron ore, iron and steel enterprises supply dependence on foreign.
       Foreign iron and steel industry scrap consumption is slightly larger than the iron ore consumption proportion. With increase of the volume of scrap steel, in the iron and steel industry of our country should will shift to this trend, late scrap steel demand will gradually increase.
In addition, use of scrap steel, energy consumption and pollutant emissions are less mills. Use 1 ton of scrap steel can replace 1 tons of pig iron, you can reduce 1.6 tons of carbon emissions, can also be water saving and reduce a lot of other solid waste emissions etc., so the promotion of steel scrap, to the green development of iron and steel industry, the energy-saving emission reduction is beneficial.
Must establish a standardized recycling processing and distribution system
       Although there are many benefits of using scrap steel, but for years because of the scrap market is not standardized, there some including adulteration irregularities etc., then and since 2011 scrap new take on the 17% of the value-added tax, make the price lower than the molten iron, which makes the mainstream of iron and steel enterprises waste steel ratio has been at a low level. At present, China's scrap ratio is only 11%, about 50% of the average relative scrap abroad than there is a big gap.
       "The amount of resources from a single point of view, as long as the vicious competition does not exist in the domestic steel scrap market, reasonable flow direction of scrap and scrap steel plant mainstream has doubled than." Wang Zhenwu believes that "to want to let mills use scrap, steel scrap the initiative to improve, on the one hand to reasonable to divert the flow of scrap steel, on the other hand should of socialization of scrap processing and distribution system to provide support, so the normal operation of the." Wang Zhenwu said that although scrap have been the national standard, but there has been no earnestly implement, because scattered social scrap supply system. "Scrap iron and steel as a large industrial production of raw materials without a factory processing system, but also how to produce the products that meet the national standards?"

       Wang Zhenwu introduced China application of scrap iron and Steel Association in 2004, in the society more normative, equipped with advanced processing equipment and supporting the processing technology, has a certain scale, to meet the requirements of environmental protection, and with the mainstream of iron and steel enterprises have good distribution of scrap processing enterprises were timely standard and organization. Such as to the scale of production reached 30 million tons, achieve environmental protection and other requirements as scrap, awarded "scrap iron and steel processing and distribution center" title; to scale up to more than 50 million tons, more standardized management of scrap steel enterprises, awarded the "scrap iron and steel processing and distribution center demonstration base" of the title. At present our country has already established 62 steel scrap steel processing base and center (30 centers, 32 bases). The total processing capacity of the base and center of more than 30000000 tons, can basically meet the demand of the 70% steel scrap. This is the implementation of product scrap supply, factory production has laid the foundation.
       "Twelfth Five Year", China's scrap iron and steel association with the Ministry of industry and information technology to develop the "scrap iron and steel processing industry access conditions" (hereinafter referred to as the "access conditions"), and actively participate in the acceptance, the purpose is to establish a sound distribution system of scrap steel processing. As of now, there are 3 batches, a total of 130 companies through the acceptance.
       Wang Zhenwu said that after the promulgation and implementation of the "access conditions", the community really formed a reasonable recycling scrap processing industry supply chain. The industry chain is the series household recycling system, the recovered from every corner of the no processing original scrap to scrap processing enterprises, processing enterprises in accordance with national standards and iron and steel enterprises in the processing requirements of a qualified scrap concentrate, and direct distribution to steel mills, reducing the intermediate links, forming a industry chain, to standardize the scrap market behavior. So far, the basic form of scrap processing and distribution system.
Should not contain the reasonable flow of scrap
       "Although the scrap industry itself has entered a virtuous development period, China's iron and steel industry, the demand for steel scrap in space great, but scrap processing industry is still in primary stage, there are still some problems." Wang Zhenwu said so.

       Although the absolute amount of the steel scrap than before many, but due to the steel production increased rapidly, especially the "Eleventh Five Year" period, scrap steel output growth rate of less than 10%, and steel production growth rate of more than 20%, the development and construction of the steel scrap industry is lower than that of steel growth rate. Therefore, the scrap ratio decreased the. Although the "Twelfth Five Year Plan" since this state has changed, scrap steel production growth of more than 10%, and steel production growth rate dropped to below 10%, but produce a scrap did not flow to major steel mills -- - the amount of purchased scrap mainstream steel is only more than 4000 million tons (mainstream steel self-produced scrap amount is more than 3000 million tons). "That is to say, there are nearly half of the domestic steel scrap does not flow to the mainstream mills, this trend should be paid attention to." Wang Zhenwu said.
Running a small electric steel works is not standardized, in the use of scrap cost is much lower than the key steel enterprises. Due to the increase of scrap resources, mainstream steel scrap consumption in decline, gave these backward production capacity of living space, and the scrap processing enterprises form vicious competition, affected the scrap processing and distribution system normal recycling and scrap processing, leading to now has been built up of scrap processing and distribution system has not been properly. This led directly to the scrap resource flow unreasonable.
       In these circumstances, to curb unreasonable flow of scrap resources, scrap ratio rising, Wang Zhenwu believes that requires several steps that guarantee.
       One is the national scrap processing enterprises access should continue to improve and continue to be, to combine the set by the state for the access conditions and the development of industry standards, so that the government acts into self-discipline to regulate the industry market.
Two is to strengthen industry regulation, play the role of local government and industry associations, collaborative processing and distribution companies to carry out supervision.
       Three is to promote the electronic commerce, the implementation of network management. Wang Zhenwu said, entrusted by the Ministry of industry, at present China application of scrap iron and Steel Association established scrap processing and distribution enterprise network platform, there have been more than 100 enterprises is brought into the platform. Chongqing renewable resources market also advance the scrap business transaction, combined with Jiangsu and other areas to expand the trading results. Industry network system and local enterprise network transaction integration, will promote the modernization process of scrap iron and steel transactions. Next, we plan to the relevant local government, local tax departments, the Ministry of Finance and the Ministry of industry and other departments to set up the interface, in order to facilitate monitoring from different perspectives."
       In order to solve the problem of scrap market unfair competition, suggested that Wang Zhenwu, countries should timely introduction of reasonable scrap preferential taxation policies. "So, we set up the scrap iron and steel processing and distribution system's actual ability to really play out 50 million tons, but now the ability to play less than half and after processing concentrate products, cost is relatively high, it is difficult to those informal backward production capacity of enterprises competition and guide now many standard scrap steel enterprises to survive the difficulties caused by. If the country can timely introduction of preferential tax policies to increase market in a reasonable fiscal policy under the regulation of the fair competition, not only can reasonably unblock the flow of scrap, but also help in the elimination of backward production capacity. " Wang Zhenwu said, "now the scrap industry recovery - processing distribution normal order had been established, also have a certain ability to monitor, the state can safely give the emerging processing and distribution key support."
       Finally, he also suggested that to encourage steel updating their own raw materials proportioning plan, "eat" scrap, save molten iron, to ensure the sustainable development of iron and steel enterprises.

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