China's scrap steel supply was expected to be higher in the fourth quarter of this year compared to the previous quarter, mainly due to the gradual increase in the operating rate of steel recyclers and the Chinese government's appeal of the transformation of urban villages, the latter of which was to revitalize China's economic growth. Scrap supply has increased due to increased scrapping activity.

In the week ending November 9, the scrap usage of 255 Chinese steel producers increased by 6.1% week on week to 512,000 tons. Using 1 ton of scrap can save around 1.6 tons of iron ore, according to the China Association of Metal Scrap Utilization.

China's scrap use will increase until 2025 as the country is seeking to reduce its reliance upon imported iron ore by using more scrap. It was expected that the Chinese steel industry’s scrap utilization rate would reach 30% in 2025, and scrap use would reach 330 million tons by the year.