Steel recyclers size options ahead of import ban

An impending policy to tighten scrap steel imports is bound to shake up the domestic market, but the influence will be limited, said experts.

"With an emerging trend that many steel recyclers are seeking to set up branches overseas, the industry is unlikely to be impacted, as imported scrap steel makes up a very small part of total scrap steel consumption, which is about 1 percent," said Guo Daqing, chief-researcher and analyst from the industry newspaper China Metallurgical News.

Guo noted that the policies might lead scrap steel dealers to stock up in the short term, but in the long term, the market will remain stable.