The punishment for breaking environmental laws in China is less severe than in other parts of the world and this fact – along with the fact that scrap is more expensive than iron ore – has led to a situation where the use of scrap in steel production has dropped by 21.7kg year-on-year between January and May 2013.

In 2012, China consumed 84Mt of scrap steel, which was 7Mt less than in 2011.

Scrap usage, however, will increase as the government begins to pay greater attention to green issues.

Source: China Metals.