(Dahe Daily·Dahe Client Reporter Qi Yi Geng Zi Teng Wen Geng Ziteng) "If it is not considered state subsidies, the scrapped price of my car is only a few hundred yuan, and I really don't want to make a fuss." Mr. Zhang, the owner of the car who is preparing to scrap the old car in his hand, said this.
The scrapping procedures are complicated and the scrapping costs are not high, which has always plagued the scrapped automobile recycling industry. The new "Scrap Motor Vehicle Recycling Management Measures" will come into effect on June 1 this year. Under the new regulations, what new changes will the scrapped automobile recycling industry take?
Current status: The scrapping rate of regular cars is not high
According to the national scrapped motor vehicle recycling situation in 2018 announced by the Market System Construction Company of the Ministry of Commerce, the number of motor vehicles recycling nationwide was 1.991 million. According to the general scrapping ratio of 4% to 6% in the international community, the scrapping rate of my country's automobiles is not high. In the past six years, the estimated scrapping rate of my country's automobiles has been between 2.5% and 3.7%, and the actual dismantling rate is less than 1%.
Take Zhengzhou City as an example. The number of cars owned by the company exceeded 4 million, but in fact, the four formal scrapped automobile companies only received more than 10,000 scrapped cars in 2018, which is a big gap from the scrap rate of 4% to 6%.
On one side, regular enterprises are "not full" and on the other hand, car owners are not aware of how to recycle and deal with scrapped cars, and are not satisfied with the current scrap recycling price.
"I had a car that needed to be scrapped before, but I contacted the processing company after being introduced by a friend. Then I waited for a few weeks before handing over the car to the processor and received a recycling fee of several hundred yuan." Mr. Wang, the owner of the car who had processed scrapped cars, said that if there were scrapped vehicles, he would not choose to take the initiative to deal with it, "the time cost was not cost-effective at all."
Because I think it is not cost-effective, some car owners would rather sell their scrapped cars to scrap purchase stations than send them to designated recycling companies. Some cars are still running on the road after the scrapping period.
Change: Five major assembly recycling and reuse
In the courtyard of Zhengzhou Zhongyuan Shang Recycling Resources Co., Ltd., a dismantling machine is working. Ma Hui, general manager of the company, said that it only takes a few minutes to break a small vehicle, while large vehicles such as buses and trucks can sort out 19 recyclable materials after dismantling.
Ma Hui introduced that the existing scrapped car management measures strictly prohibit the recycling of old parts of the "five assembly" of automobile engines, direction machines, transmissions, front and rear axles and frames. They can only be sold at the price of metal, while the price of scrap metal is much lower.
An ordinary small car can generally dismantle about 0.8 tons of "medium-scrap" grade scrap steel. According to the price provided by the scrap steel information network, the purchase price of Zhengzhou's "Zhongzhe" on May 28 was 2,100 yuan per ton. Excluding freight, dismantling, processing and other expenses, the purchase price of each ton of scrapped cars is 250 yuan. Calculated in this way, the residual value of a scrapped car may be less than 200 yuan.
Take the Mercedes-Benz sedan , which has a relatively high fractional and solid-sized as an example. If Mercedes-Benz sedans that have exceeded a certain age are sold as parts after disassembly, their income may be higher than the price of trading used cars. In regular disassembly companies, these parts can only be treated as scrap metal, making scrapped cars like a pile of scrap steel, consumers cannot sell at the price, and recycling companies cannot make money. This is also one of the reasons why car owners currently feel that it is not cost-effective and are unwilling to scrap them voluntarily.
The newly released "Regulations on the Recycling of Scrapped Motor Vehicles" has been adjusted. If the dismantled "five major assembly" of scrapped motor vehicles meet the conditions for remanufacturing, they can be sold to enterprises with remanufacturing capabilities in accordance with relevant national regulations and recycled through remanufacturing.
"Actually this is a good thing." Ma Hui said that under the new policy, the five major assembly can only be handed over to qualified professional enterprises for reuse and will not flow directly into the market after dismantling, which can effectively prevent scrapped cars from flowing into the black market.
Industry insiders said that the new regulations not only reflect the requirements of developing a circular economy, allowing scrapped motor vehicles to be remanufactured and reused, but are also expected to increase the economic interests of consumers and recycling companies.
Impact: The industry has relaxed the processing of scrapped cars and is smoother
Secretary-General of Henan Scrap Vehicle Association Liu Yanfang introduced that there are currently 45 scrapped car companies in the province, with more than 40 outlets, and distributed in various cities. They implement local scrapping and cannot cross-regional areas. Regular enterprises are relatively reliable. There are four companies in Zhengzhou: Zhengzhou Zhongyuan Shang, Henan Zhonglian, Henan Sanlian, and Henan Fuxing; two companies in Luoyang: Luoyang Jinshou and Henan Baitong; in addition, there are Jiaozuo Hongyuan, Zhumadian Wuhua, etc. The new regulations have lifted the restrictions on "special industries" and lowered the industry threshold. In the future, consumers will have more choices, which will improve problems such as few recycling companies and low recycling returns, and consumers do not know how to contact recycling companies.
"Regular enterprises are looking forward to the implementation of the new regulations." Ma Hui said that in the future, companies that strictly abide by technical standards and environmental protection requirements will gain more users, and companies with better services will be more competitive. "For example, our Zhongyuan Business has already built a service center in Zhengzhou. Now it is basically a phone call for the car owners. We take the initiative to collect the cars and assist in all the procedures." Ma Hui said that with the implementation of the new policy, car owners can enjoy new products and services with confidence, which is beneficial to the development of the entire scrapped car industry.
On the other hand, the new regulations strictly regulate the dismantling work. In order to cooperate with the implementation of the Measures, the Ministry of Commerce simultaneously revised the "Technical Specifications for Scrapped Automobile Recycling and Dismantling Enterprises". If enterprises want to dispose of hazardous waste and solid waste at will, it is an illegal act, and the penalties are greatly strengthened. "This also prompts us enterprises to invest more in environmental protection and cannot have problems." Ma Hui believes that the new regulations will have a great role in promoting the environmental protection upgrade of the automobile scrapping industry.
Looking forward: The specific implementation rules must be issued as soon as possible
"The new regulations can be regarded as the constitution of the scrapped car industry. The new regulations currently formulated are all relatively principled." Liu Yanfang said that the Ministry of Commerce will take the lead and a series of specific rules will definitely be issued. To talk about the impact on the industry, it depends on the explanation of the next specific rules. Industry insiders generally believe that the implementation rules and relevant technical standards related to the new regulations should be issued as soon as possible. For example, a prominent question is, which companies should the five major components that should be sold to?
"At present, there are no large-scale related companies in Henan Province. The qualified ones are mainly Hejian, Hebei Province, Donghai County, Lianyungang City, Jiangsu Province, Jining, Shandong Province and Xiangyang, Hubei Province." The person in charge of a scrapped vehicle company said that the cross-provincial flow of the five assembly components requires specific implementation details. "At present, no parts remanufacturing company has acquired the 'five assembly' business to connect with us." And because there is no reference, "we are not sure how much the scrapped assembly should be sold, so we can only determine it while operating."
In addition, the new regulations clearly stipulate that matters about scrapping new energy motor vehicles will be formulated separately, but whether it is technical specifications or environmental protection requirements, there are large differences between new energy vehicles and fuel vehicles, and details are also required for how to deal with it.
"The new regulations should have certain subsidies for private car scrapping at the specific operation level in terms of details. If the subsidies are strong, it may have a positive impact on the personal willingness of private car owners." Liu Yanfang said that it is expected that the details of the new regulations can mobilize car owners' enthusiasm for scrapping vehicles. (Editor Yuan Min)
