The new regulations relax the industry entry threshold. The car I bought at high prices depreciates into scrap metal when it is scrapped and recycled. A van is even sold for less than 200 yuan, which is not worth a meal.

A scrapped car is not worth a meal

The low price has something to do with monopoly. The new regulations relax the industry entry threshold

The car I originally bought at high prices depreciates into scrap metal when it is scrapped and recycled. A van is not worth a meal. Recently, the broadcast of inquiry in Shandong has once again attracted everyone's attention to scrapped car recycling. At present, many scrapped car owners are reluctant to sell due to low prices, while recycling companies are in a state of "not enough to eat".

Why don’t recycling companies increase prices to increase car owners’ enthusiasm for selling cars? Can the dilemma of scrapped car recycling be broken? Qilu Evening News ·Qilu One Point reporter visited and investigated this.

29 companies almost all charge

per ton at 200 yuan. Although they had long expected it, when they heard the price quoted by the recycling company, Mr. Wang, a citizen, still couldn't accept it. In 2003, cars were considered a luxury goods. Mr. Wang spent more than 100,000 yuan to buy a Korean Hyundai Elantra sedan. The whole family relied on it for traveling and took good care of it.

With the sharp increase in the number of motor vehicles in Jinan City, Mr. Wang’s baby has also entered his "twilight years". Due to changes in work, Mr. Wang has driven less and less frequently in recent years. Recently, he suddenly remembered his beloved car. After inquiry, he had already left the review cycle for three times and the vehicle was already scrapped. Since

has been scrapped, it is impossible to drive on the road again. After some thought, Mr. Wang asked about the recycling of scrapped vehicles by phone and was told that he could tow the truck at home or handle all the procedures such as vehicle cancellation. But when asked about the price, the other party said that they could only compensate at a price of 200 yuan per ton based on the curb mass of the vehicle.

Mr. Wang’s car is about 1.5 tons. If sold to a recycling company, he can only get about 300 yuan. This money is not even enough for a family to have a good meal. Due to the huge psychological gap, Mr. Wang finally gave up the decision to sell the car and decided to wait. Similar situations are not uncommon. At present, there are only 29 formal scrapped car recycling companies in the province, almost all of which purchase scrapped cars at a price of 200 yuan per ton, and a van is even sold for less than 200 yuan. Many car owners are not very enthusiastic about selling cars, and some even sell scrapped cars to illegal enterprises and individuals.

Steel price is not high, and the company says the profit is very low

In the political question program, Zhang Deping, director of the Provincial Department of Commerce, analyzed that the low price of recycling vehicles has a certain relationship with monopoly. Since 2015, the province has not approved the qualification for scrapped motor vehicles. Now there are only 29 formal companies in the province, which has caused a monopoly to a certain extent.

monopoly generally means huge profits. However, many scrapped car recycling companies almost unanimously complain, saying that their profits are meager and are just trying to support them now.

For a long time, the five major assembly of scrapped cars, including the engine, front and rear axles, large frames, transmissions, and direction machines, must be completely destroyed under the supervision of the traffic police. The scrapped cars are finally recycled in the form of scrap iron.

"There was a period when steel prices rose around 2008, which could be said to be huge profits. In recent years, the steel industry was sluggish, so it can only be considered a barely support." Secretary-General of Shandong Material Regeneration Association and Deputy General Manager of Shandong Huajia Resource Comprehensive Utilization Co., Ltd. Ge Jiwei introduced that around 2008, a ton of scrap iron could be sold for 3,000 to 4,000 yuan. When the company recycled scrap trucks, it also gave a price of 4,000 yuan per ton. However, the steel industry was sluggish. Around 2015, scrap iron even fell to 4,000 yuan per ton. Since last year, the steel industry has recovered and remained at the level of about 1,000 yuan per ton. Based on this, the price of scrapped cars for enterprises can only be reduced repeatedly. In the view of recycling companies, the price of

200 yuan per ton is still a meager profit. Ge Jiwei settled a calculation for the reporter of Qilu Evening News and Qilu One Point. A car is generally around 1.5 tons, and it can dismantle about 700 kilograms of scrap iron. It can be sold at 1,000 yuan per ton. Excluding giving the car owner about 300 yuan, it seems that the company has made a profit of 400 yuan.

is not the case. Ge Jiwei introduced that scrapped car recycling companies are expensive to operate and need to occupy a large amount of warehousing land and human resources. In addition, there are a large number of salesmen. "The state imposes high taxes on the scrapped vehicle recycling industry, and the tax amount is now about 20%.

A scrapped car is not worth a meal

The low price has something to do with monopoly. The new regulations relax the industry entry threshold

The car I originally bought at high prices depreciates into scrap metal when it is scrapped and recycled. A van is not worth a meal. Recently, the broadcast of inquiry in Shandong has once again attracted everyone's attention to scrapped car recycling. At present, many scrapped car owners are reluctant to sell due to low prices, while recycling companies are in a state of "not enough to eat".

Why don’t recycling companies increase prices to increase car owners’ enthusiasm for selling cars? Can the dilemma of scrapped car recycling be broken? Qilu Evening News ·Qilu One Point reporter visited and investigated this.

29 companies almost all charge

per ton at 200 yuan. Although they had long expected it, when they heard the price quoted by the recycling company, Mr. Wang, a citizen, still couldn't accept it. In 2003, cars were considered a luxury goods. Mr. Wang spent more than 100,000 yuan to buy a Korean Hyundai Elantra sedan. The whole family relied on it for traveling and took good care of it.

With the sharp increase in the number of motor vehicles in Jinan City, Mr. Wang’s baby has also entered his "twilight years". Due to changes in work, Mr. Wang has driven less and less frequently in recent years. Recently, he suddenly remembered his beloved car. After inquiry, he had already left the review cycle for three times and the vehicle was already scrapped. Since

has been scrapped, it is impossible to drive on the road again. After some thought, Mr. Wang asked about the recycling of scrapped vehicles by phone and was told that he could tow the truck at home or handle all the procedures such as vehicle cancellation. But when asked about the price, the other party said that they could only compensate at a price of 200 yuan per ton based on the curb mass of the vehicle.

Mr. Wang’s car is about 1.5 tons. If sold to a recycling company, he can only get about 300 yuan. This money is not even enough for a family to have a good meal. Due to the huge psychological gap, Mr. Wang finally gave up the decision to sell the car and decided to wait. Similar situations are not uncommon. At present, there are only 29 formal scrapped car recycling companies in the province, almost all of which purchase scrapped cars at a price of 200 yuan per ton, and a van is even sold for less than 200 yuan. Many car owners are not very enthusiastic about selling cars, and some even sell scrapped cars to illegal enterprises and individuals.

Steel price is not high, and the company says the profit is very low

In the political question program, Zhang Deping, director of the Provincial Department of Commerce, analyzed that the low price of recycling vehicles has a certain relationship with monopoly. Since 2015, the province has not approved the qualification for scrapped motor vehicles. Now there are only 29 formal companies in the province, which has caused a monopoly to a certain extent.

monopoly generally means huge profits. However, many scrapped car recycling companies almost unanimously complain, saying that their profits are meager and are just trying to support them now.

For a long time, the five major assembly of scrapped cars, including the engine, front and rear axles, large frames, transmissions, and direction machines, must be completely destroyed under the supervision of the traffic police. The scrapped cars are finally recycled in the form of scrap iron.

"There was a period when steel prices rose around 2008, which could be said to be huge profits. In recent years, the steel industry was sluggish, so it can only be considered a barely support." Secretary-General of Shandong Material Regeneration Association and Deputy General Manager of Shandong Huajia Resource Comprehensive Utilization Co., Ltd. Ge Jiwei introduced that around 2008, a ton of scrap iron could be sold for 3,000 to 4,000 yuan. When the company recycled scrap trucks, it also gave a price of 4,000 yuan per ton. However, the steel industry was sluggish. Around 2015, scrap iron even fell to 4,000 yuan per ton. Since last year, the steel industry has recovered and remained at the level of about 1,000 yuan per ton. Based on this, the price of scrapped cars for enterprises can only be reduced repeatedly. In the view of recycling companies, the price of

200 yuan per ton is still a meager profit. Ge Jiwei settled a calculation for the reporter of Qilu Evening News and Qilu One Point. A car is generally around 1.5 tons, and it can dismantle about 700 kilograms of scrap iron. It can be sold at 1,000 yuan per ton. Excluding giving the car owner about 300 yuan, it seems that the company has made a profit of 400 yuan.

is not the case. Ge Jiwei introduced that scrapped car recycling companies are expensive to operate and need to occupy a large amount of warehousing land and human resources. In addition, there are a large number of salesmen. "The state imposes high taxes on the scrapped vehicle recycling industry, and the tax amount is now about 20%."According to this ratio, it will cost about 140 yuan to dismantle a car.

In addition, towing trucks are also a major expenditure. Currently, they provide towing truck services to car owners, which are free of charge regardless of distance. If you go to Shanghe , the towing fee alone will be 200 to 300 yuan. In addition, the expenses such as solid hazardous waste treatment and transportation, the profit is already very limited. Some car owners think that the price is low and sell it to illegal dismantling companies

Compared with the meager profit, the bigger problem faced by scrapped car recycling companies is " "There is no enough to eat", a large number of equipment is often idle. Taking Shandong Huajia as an example, it can dismantle at least 50,000 vehicles every year, and up to 80,000 vehicles can be dismantled. At present, there are only about 4,000 scrapped cars they actually dismantled throughout the year.

"This year, the situation is better. Jinan City is promoting the elimination of old diesel vehicles. So far, we have recycled about 6,000 vehicles. "Ge Jiwei said, but this quantity has prepaid the future stock in advance.

At present, there are 3 regular scrapped car recycling companies in Jinan City, one in Laiwu District. It is understood that this company in Laiwu invested more than 20 million yuan in the early stage , suffering from the lack of supply, only received more than 280 cars in the first half of the year, with a loss of more than 500,000 yuan.

At present, Jinan City does not scrap more than 7,000 vehicles by formal recycling of enterprises every year. According to data released by the official website of Jinan Municipal Public Security Bureau, in the first half of the year, the number of forced scrapped motor vehicles in the city has reached more than 12,000.

So many scrapped cars have not taken formal channels, where have they gone? According to industry insiders, there are only the following channels: one is to keep it in person, or become zombie cars or personal collections; the second is to give it to relatives and friends in the countryside and continue to be used in the countryside; the third is also the most important channel, secretly sold to enterprises or individuals who illegally dismantle vehicles. "These self-employed people do not have the cost of environmental protection, etc., so the price they give is high. "Ge Jiwei said.

car owners sold their vehicles to illegal dismantling companies, which increased the cost of social governance and put pressure on environmental protection. Some scrapped cars were even dismantled and assembled and put on the road again, posing a huge safety hazard. Less than a week after this investigation in Shandong, Heze City banned and closed more than 40 illegal recycling and dismantling sites.

new regulations bring a turning point, and the industry entry threshold is relaxed

car owners are reluctant to sell cars because of the low price, and the companies are "not full". At present, the scrapped car recycling industry seems to be in a vicious cycle. However, a new turning point has appeared. In the second half of the year, scrapped car recycling companies will usher in a major change.

On June 1, the "Regulations on the Recycling of Scrapped Motor Vehicles" (hereinafter referred to as the "Measures") began to be implemented. The Measures implement the requirements of the State Council, cancel the provisions on the purchase price of scrapped motor vehicles based on the market price of scrap metals, cancel the special industry license of scrapped motor vehicle recycling and dismantling enterprises, cancel the clause that must be destroyed by the "five major assembly", allow conditions for remanufacturing and reuse, and improve resource recycling rate. This will surely bring a round of adjustment and development opportunities to the industry.

Ge Jiwei introduced that many investors with keen sense of smell have already smelled business opportunities. For more than a month, he has received one or two calls from inquiries every day. According to his summary, practitioners from the five major industries are currently trying to get a share of the pie from the scrapped vehicle recycling field, namely steel Iron plants, recycling industry, auto repair factories, transportation industry, and new used car sales industry.

Ge Jiwei predicts that a number of recycling companies may be put into operation in the second half of this year. With the conditional recycling of the five major assembly, the profit margin of the company will also expand. With the added competitors, the recycling price of scrapped cars should increase.

Ge Jiwei introduced that although in the long run, the sales of the five major assembly are subject to conditions to be liberalized. Sales are a major benefit, but it will take some time to implement the new policy, and it is difficult to change significantly within three to five years. First, there are currently very few re-manufacturing companies in the five major assembly, with only more than 30 in the country, and there are only two engine re-manufacturing companies in Shandong. Secondly, the only re-manufacturing companies can only recycle a very small number of models of engine brands produced by their factories, and are limited to products in recent years. Scrapped cars basically do not meet this condition. Third, there are basically no re-manufacturing companies in the other four major assembly, so there is no sales channel.Therefore, before the national remanufacturing enterprises develop, the five major assembly sales markets are virtual. The efforts of the new regulations still require time to be adjusted. ”

(Qilu Evening News·Qilu One Point Reporter Zhang Tailai Fan Jia Intern Liu Fei)

Therefore, before the national remanufacturing enterprises develop, the five major assembly sales markets are virtual. The efforts of the new regulations still require time to be adjusted. ”

(Qilu Evening News·Qilu One Point Reporter Zhang Tailai Fan Jia Intern Liu Fei)