ISRI Hosts One of Top Chinese Economic Officials in United States to Discuss US Scrap Recycling Industry, Trade with China

For Immediate Release April 15, 2011

China is US Scrap Recycling Industry’s Largest Customer

Washington, D.C. – The Institute of Scrap Recycling Industries, Inc., (ISRI), on Wednesday hosted a meeting at its Washington, DC, office with a Chinese delegation to discuss education and training opportunities to improve China’s ability to consume greater volumes of commodity grade scrap from the United States. Participants included Mr. Zhang Shaogang, the Minister Counselor of Economic and Commercial Office, Chinese Embassy to the United States, ISRI President Robin Wiener and Scott Horne, ISRI General Counsel and Vice President for Government Affairs.
Also attending the meeting at ISRI was Mr. Tang Chengxi, Senior Vice President of Beida Jade Bird Group; General Manager of Beida Jade Bird Universal Investments (USA) Ltd; Chairman of Beijing Beida Jade Bird International Education Investment Management Co., Lt; and COO of Beida Jade Bird IT Education. Minister Counselor Zhang’s assistant Mr. Jing Xu accompanied the delegation.
 
“Minister Counselor Zhang and the delegation clearly recognize and stressed repeatedly the importance of the trade between United States and China,” Wiener said. “Additionally, the group emphasized how advanced our recycling industry is here in the United States and how they want to learn from us and tap into our educational and training expertise. The US scrap recycling industry and China have a very strong and beneficial relationship.”

Wiener noted that China is the US scrap recycling industry’s biggest customer, accounting for $8.5 billion of scrap export sales in 2010, which is up 20 percent from 2009 and for nearly 30 percent of the total. From a Chinese perspective, the US scrap recycling industry is providing that country with the raw materials they need to sustain its rapid economic growth. This is in line with President Obama’s National Export Initiative that seeks to double exports over the next five years by working to remove trade barriers abroad, by helping firms -- especially small businesses -- overcome the hurdles to entering new export markets, by assisting with financing and in general by pursuing a government-wide approach to export advocacy abroad, among other steps.

More specifically, the United States sent to China in 2010 approximately 18 million metric tons (mt) of scrap commodities that included 11.7 million mt of recovered paper; three million mt of ferrous scrap; 1.2 million mt of aluminum scrap; and 750,000 mt of copper scrap.

Additionally, according to ISRI Chief Economist Director of Commodities Joe Pickard, using scrap in manufacturing processes is a lower cost option than virgin material.

Pickard noted that China had its first trade deficit in the first quarter 2011 in seven years which resulted in part from higher commodity prices

“Manufacturing with US scrap products are one key to lessening China’s commodity import bill, helping them in terms of trade balance as well as inflation and overall economic growth,” Pickard said. “Here at home, it strengthens our economy and creates good jobs.”

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The Institute of Scrap Recycling Industries, Inc., (ISRI) is the “Voice of the Recycling Industry.” ISRI represents approximately 1,500 companies in 21 chapters nationwide that process, broker and consume scrap commodities, including metals, paper, plastics, glass, rubber, electronics and textiles. With headquarters in Washington, DC, ISRI provides education, advocacy and compliance training and promotes public awareness of the vital role recycling plays in the US economy, global trade and environment