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High light moment of scrap cars dismantling and recycling!

Author:Zhongan-ECO Comefrom: Date:2021/10/10 9:01:00

The high light moment of scrap cars dismantling and recycling is coming!

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Current situation of scrap cars in China

The number of China's scrapped car is on an explosively growing trend, and the development of scrapped car recycling industry has a golden prospect. The current scrapped car recycling system is not perfect in our country, because related industries driven by market develop slowly, and there are some outstanding problems such as potential safety risks, environmental pollution and resource waste. The paper analyzes and studies the existing problems and countermeasures to investigate the development strategy of scrapped car recycling industry according to the whole automobile industry chain construction, technology and equipment conditions, policy guidance, etc. and at last explore the new industrial development pattern of serving automobile reverse design.

According to reports, in the first quarter of 2021, China have 287 million cars,  there are 72 cities with more than 1 million. In 2020,  theoretical vehicle scrap number is about 6 million in China (the average service life of automobiles is calculated as 15 years). In the next few years China vehicle scrap volume will increase to more than 20 million vehicles per year. In 2020,  recycling volume of scrapped cars will be 2.066 million in China, the recycling rate less than 30%.

New rules on car recycling, scrapping

China's latest policies on recycling scrapped motor vehicles are to take effect from September, according to the Ministry of Commerce, and they are expected to help create a market worth a 100 billion yuan ($14.39 billion) to sustainable development of the automobile industry.

The policies will help to increase China's recycling and dismantling capability and shore up the healthy development of the scrap industry, according to Zhang Ying, a secretary-general of the China Resource Recycling Association.

The policies propose that China will begin a qualification system for enterprises to engage in the recycling and dismantling of scrapped motor vehicles.

Without a qualification, no company or individual may operate such a business.

Based on the new rules, recycling enterprises must record specific information about each recycled engine, gearbox, front and rear axle and chassis, including serial numbers and models, and upload the information to a national database.

Only qualified enterprises will be able to dispose of hazardous waste and components, such as catalytic converters, with relevant information also being submitted to the database.

New energy vehicles are also included in the policies with special attention being paid to the disposal and recycling of batteries.

The market potential chances for end-of-life vehicles in China

Statistics show China had 260 million vehicles on the road as of 2019, and according to what is known as the international average scrap ratio, 9.1 million of those vehicles are classes as obsolete.

However, only 1.95 million vehicles were scrapped last year.

"With the improvement of management measures and relevant laws and regulations, vehicle scrapping will gradually move toward standardization," Zhang said.

Haitong Securities estimate that at present, the market for auto scrapping in China is worth 6.6 billion yuan annually.

According to Essence Securities, in the next three years, the market for waste materials from scrapped vehicles will be valued at 40.1 billion yuan, and the market of reconditioned engines, gearboxes, front and rear axles and chassis will be worth 79.9 billion yuan.

Suggestions for increasing scrapped vehicles in China

China government vigorously supports the scrapped automobile recycling industry, continuously standardizes the recycling process, and formulates related management methods and technical standards. Guide automobile manufacturers to build or jointly build a reverse recycling system for end-of-life vehicles in accordance with the law, strengthen information sharing with end-of-life motor vehicle recycling and dismantling enterprises, resource comprehensive utilization enterprises, etc., and expand the use of recycled materials, remanufactured products and second-hand parts to achieve the high-value utilization of dismantled products of scrapped automobiles improves the comprehensive utilization efficiency of automobile resources.

As overall solid waste disposal solutions provider and  high-end shredder equipment machine manufacturer, Zhongan-ECO propose automobile vehicles dismantling should be "process-oriented, mechanized, harmless, resource-based, and information-based" to realize intelligent dismantling, vehicle shredding, fine sorting and parts regeneration. Build a high-end automated disposal line for scrapped cars, improve dismantling efficiency and reduce labor costs.

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