5.2.3. Normalization of the Scrap Steel Market

The consumption of scrap resources in steel production will dramatically increase as the availability of recyclable scrap in China increases. At present, China's scrap industry has four main problems: (1) the capacity of scrap processing only accounts for 30% of the social scrap volume; this value is far from the demand of the steel industry; (2) the quality of equipment available for scrap processing is low, and dismantling lines for automobiles has not yet been extensively established; (3) reliable statistical data for the classification of scrap resources and technical standards for the scrap processing products industry are lacking; and (4) the taxation of scrap import and distribution enterprises is not conducive to scrap recycling. Therefore, management of the scrap steel industry should be improved, and scientific processing and classified sales should be implemented to meet the needs of various users and provide strong support for the transformation of the production structure of the steel industry.

**Author Contributions:** K.H. and X.L. prepared and revised the manuscript under the supervision of L.W. All authors contributed to the general discussion. All authors have read and agreed to the published version of the manuscript.

**Funding:** This work is financially supported by the National Key R&D Program of China (Grant No. 2016YFB0601101).

**Conflicts of Interest:** The authors declare no conflict of interest.
