Recycled metals outshine miners

China is on the cusp of a scrap wave that will return metal from aging cars and expired fridges to the supply chain in a growing threat to mining companies, according to Chiho-Tiande Group Ltd, a top recycler, which is taking over one of the biggest and oldest names in Europe's scrap business.

The firm is acquiring Scholz Holding GmbH, a 144-year-old German company, in a deal that will expand its procurement channels in Europe, and provide the technical expertise to process an expected surge of scrap in China.

After 30 years of industrialization, the country's pool of metal goods will start being recycled in substantial volumes in about two years' time, beginning with cars, Chief Investment Officer Goh Kian Guan said in an interview in Shanghai.