The term "urban villages" refers to projects in rural areas, usually within the jurisdiction of major cities in China. This government initiative is aimed at revitalizing the Chinese economy. This revitalization has been particularly aggravated by difficulties in the property sector, which is the main driver of steel demand in China.
Industry sources report a noticeable increase in scrap supply due to an increase in dismantling activities. On November 22, China's Ministry of Industry and Information Technology announced that it has identified 135 steel scrap recyclers in the country that meet quality standards for entry into the scrap recycling sector.
Scrap utilization by 255 Chinese steel mills rose 6.1% to 512,000 metric tons in the week to November 9.
Looking back to 2022, the pandemic and the sluggish economy have had negative impacts on steel scrap supply and demand in China. According to data from the China Iron and Steel Industry Association, China's steel scrap production in 2022 was 260 million metric tons, down 10 million metric tons from 2021. In addition, the steel industry's use of steel scrap in 2022 reached 210 million metric tons, down 16.19 million metric tons from the previous year.