Waste Electrical and Electronic Products Recovery Management Opinions

Waste Electrical and Electronic Products Recovery Management Opinions

The Ministry of Commerce recently announced that the "Administrative Measures for the Recycling of Waste Electrical and Electronic Products (Draft for Solicitation of Comments)" proposes to adopt a filing system for the recycling of used electrical appliances. The recovery subject should establish a traceability system for the recovery and delivery of delivery records. If the implementation is not in place, it will be subject to 10,000. The fine below the dollar. Industry insiders believe that, as the supporting policies for the “Regulations on the Management of Waste Electrical and Electronic Products Recycling” and “Administrative Measures on the Collection and Use of Waste Electrical and Electronic Products Processing Funds”, the Opinion Draft may further promote the shuffling of waste electrical and electronic recycling industries. At present, many listed companies have stepped up their layout.

Industry chaos urgently need rectification

By the end of 2011, the total social possession of major electrical and electronic products in China had exceeded 1.77 billion units. At present, electrical and electronic products have entered the centralized scrapping period, and the estimated amount of discarded each year amounts to tens of millions of units. It is expected that the amount of scrapped materials will reach 137 million units in 2020.

These waste electrical appliances contain rich value, and the prospects for the recycling industry of electronic and electrical products are considerable. Pan Yonggang, vice president of the China Recycling Resource Recycling Association, once said that a single ton of waste mobile phones can be processed and refined to produce 300-400 grams of gold and 500 grams of silver.

However, the current status of China's electrical and electronic recycling is not optimistic. Because the purchase price is relatively high, more waste electrical appliances in the market have flowed to “black workshops”. They mostly use precious metals such as open burning and strong acid soaking to extract precious metals and emit three wastes at will, causing serious pollution to the atmosphere, soil and water bodies.

In addition, although the formal recycling companies have advanced classification processing technologies, this has led to high operating costs, and the “recycling national team” has to adopt measures to reduce the purchase price of waste electrical appliances, which makes it possible to have advanced recycling technology. However, the company did not receive enough sources of supply. The person in charge of a certain recycling company reported to the media that the company was facing the embarrassing situation of losing money.

According to industry insiders, with the publication of the draft, the chaos in the electronics and electronics recycling industry will be contained. Due to the implementation of a combination of filing and retrospective systems, the industry's concentration will be greatly enhanced.

Listed companies seek layout and increase revenue

As an important part of China's circular economy strategy, the recycling of waste electrical and electronic products has always attracted the attention of listed companies. In recent years, TCL and Changhong have made a number of important initiatives. Changhong officially opened the first nationwide uniform recycling hotline in China's home appliance industry. The company recently invested 300 million yuan to build a new TCL environmental technology base in Huizhou. Bohai Securities believes that the recycling of waste electrical appliances as an emerging industry will soon become a profit point for home appliance companies, but it will provide an extension of the industry chain for future consumer electronics manufacturing companies.

In the second half of this year, the "Administrative Measures on the Collection and Use of Waste Electrical and Electronic Product Handling Funds" has been implemented first, with a significant increase in the subsidy standards compared to previous years. The subsidy for processing funds for televisions and microcomputers can reach up to 85 yuan per unit, and For the first time, it explicitly proposed to subsidize the air conditioners in the rooms.

Liu Xinyan, the first entrepreneurial securities analyst, believes that at present, among the listed companies, Greentech, Dongjiang Environmental Protection, and Yiqiu Resources all rely on waste electrical appliance recycling as their main business, and the company may face a better industry outlook in the future. In addition, foreign investors are also eyeing cakes, it is understood that Japan's Matsushita Corporation in 2011 with the Hangzhou Dadi Environmental Protection Company, Tong Wo Environmental Recycling Company, and other joint venture factories intend to seize the opportunity of recycling of old appliances.

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