Although the amount of scrap steel resources is increasing rapidly, there are still many problems in resource utilization. Li Shubin summarized it into 3 aspects:

The first is the quality of scrap steel. At present, the quality inspection of scrap steel mainly relies on the visual inspection of staff, there is no third-party certification, and the lack of intelligent mechanized equipment testing, which is prone to quality objections and economic disputes. This requires steel companies and scrap steel recycling companies to strictly control the quality of scrap steel, strengthen the selection and classification of social waste steel, screen and sort high-alloy steel scrap, stainless steel scrap, and galvanized automobile sheet scrap, and sort them for storage. "Scrap steel, eat good scrap" to create conditions.

The second is environmental protection. With the implementation of the new national environmental protection tax law and the increase of environmental protection supervision, enterprises face great difficulties and challenges in production and operation. For example, the comprehensive utilization of metallurgical slag, especially converter and electric furnace steel tailing, is imminent. Some companies have been exposed by TV stations, and some companies have already paid a solid emission tax of 25 yuan / ton since April this year. At the same time, about 6 million tons of crushing line tailing need to be processed every year nationwide. Although it is not difficult to handle, it still needs to be handled in compliance.

The third is the issue of input tax invoices for waste goods transactions. Beginning in June 2016, the State Administration of Taxation has issued a document to routinely check the issue of off-site billing of waste goods in some provinces and cities. Many provinces and localities have adopted many measures, and the problem of difficulty in issuing tickets has been initially alleviated. However, there is no good solution to the input ticket problem, and the tax risk of enterprises still exists.