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| Utah                                                                            | 81                  - 0674073                         |
|---------------------------------------------------------------------------------|-------------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) | (I.R.S.                  Employer Identification No.) |

| 175                  East 400 South Suite 900, Salt Lake City, Utah | 84111                       |
|---------------------------------------------------------------------|-----------------------------|
| (Address                  of principal executive offices)           | (Zip                  Code) |

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**SCRAP        CHINA CORPORATION**

**FORM        10-QSB**

**QUARTER        ENDED September 30, 2006**

**TABLE        OF CONTENTS**

|                                                                                                                                                                                                                                                                            |                                                                         | **Page** |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|----------|
| **PART                  I - FINANCIAL INFORMATION**                                                                                                                                                                                                                             |                                                                         |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  1.                                                                                                                                                                                                                                                        | Financial                  Statements                                        |     |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Condensed                  Balance Sheets - September 30, 2006 and June 30, 2006                  (Unaudited)                                                                                                                                                                   | 3                                                                            |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Condensed                  Statements of Operations for the Three Months Ended September 30,                  2006 and                  2005 and for the Period from June 15, 2006 (Date of Inception)                  through                  September 30, 2006 (Unaudited) | 4                                                                            |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Condensed                  Statements of Cash Flows for the Three Months Ended September 30,                  2006 and                  2005 and for the Period from June 15, 2006 (Date of Inception)                  through                  September 30, 2006 (Unaudited) | 5                                                                            |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Notes                  to Condensed Financial Statements                                                                                                                                                                                                                        | 6                                                                            |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  2.                                                                                                                                                                                                                                                        | Management’s                  Discussion and Analysis                  | 7        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  3.                                                                                                                                                                                                                                                        | Controls                  and Procedures                                     | 7        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| **PART                  II - OTHER INFORMATION**                                                                                                                                                                                                                                |                                                                         |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  1.                                                                                                                                                                                                                                                        | Legal                  Proceedings                                           | 8        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  2.                                                                                                                                                                                                                                                        | Unrestricted                  Sales of Equity Securities and Use of Proceeds | 8        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  3.                                                                                                                                                                                                                                                        | Default                  Upon Senior Securities                              | 8        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  4.                                                                                                                                                                                                                                                        | Submission                  of Matters to a Vote of Security Holders         | 8        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  5.                                                                                                                                                                                                                                                        | Other                  Information                                           | 8        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Item                  6.                                                                                                                                                                                                                                                        | Exhibits                                                                     | 9        |
|                                                                                                                                                                                                                                                                            |                                                                         |     |
| Signatures                                                                                                                                                                                                                                                                      | 10                                                                           |

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**PART        I - FINANCIAL INFORMATION**

**ITEM        1. FINANCIAL STATEMENTS**

**SCRAP        CHINA CORPORATION**

**(A        Development Stage Company)**

**CONDENSED        BALANCE SHEETS**

**(UNAUDITED)**

|                                                                                                                                                                  |   | **September                  30** |     | **June                  30** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|------------------------------|--------|
|                                                                                                                                                                  |   | **2006**                          |     | **2006**                     |   |
| **ASSETS**                                                                                                                                                            |   |                              |     |                         |   |
| **Current                  Assets**                                                                                                                                   |   |                              |     |                         |   |
| Cash                                                                                                                                                                  |   | $                                 | 426      |                         | $      | 450 |   |
|                                                                                                                                                                  |   |                              |     |                         |   |   |   |
| **Total                  Assets**                                                                                                                                     |   | $                                 | 426      |                         | $      | 450 |   |
|                                                                                                                                                                  |   |                              |     |                         |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' DEFICIT**                                                                                                            |   |                              |     |                         |   |   |   |
| **Current                  Liabilities**                                                                                                                              |   |                              |     |                         |   |   |   |
| Accrued                  liabilities                                                                                                                                  |   | $                                 | 7,750    |                         | $      | 5,000 |   |
| Payable                  to related party                                                                                                                             |   |                              | 87,771   |                         |   | 87,116 |   |
|                                                                                                                                                                  |   |                              |     |                         |   |   |   |
| **Total                  Current Liabilities**                                                                                                                        |   |                              | 95,521   |                         |   | 92,116 |   |
|                                                                                                                                                                  |   |                              |     |                         |   |   |   |
| **Stockholders'                  Deficit**                                                                                                                            |   |                              |     |                         |   |   |   |
| Common                  shares - 250,000,000 shares authorized; 7,710,843and 10,000,000                  shares                  issued and outstanding, respectively |   |                              | 7,711    |                         |   | 7,711 |   |
| Additional                  paid-in capital                                                                                                                           |   |                              | 2,289    |                         |   | 2,289 |   |
| Deficit                  accumulated during development stage                                                                                                         |   |                              | (105,095 | )                            |   | (101,666 | ) |
|                                                                                                                                                                  |   |                              |     |                         |   |   |   |
| **Total                  Stockholders' Deficit**                                                                                                                      |   |                              | (95,095  | )                            |   | (91,666 | ) |
|                                                                                                                                                                  |   |                              |     |                         |   |   |   |
| **Total                  Liabilities and Stockholders' Deficit**                                                                                                      |   | $                                 | 426      |                         | $      | 450 |   |

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**SCRAP        CHINA CORPORATION**

**(A        Development Stage Company)**

**CONDENSED        STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                            |   | ****For                  the Three Months**ended September                  30,** |     |  ****For                  the Three Months**ended September                  30,** |   |  ********For                  the                  period**************June                  15, 2005 (date of**inception) through**September 30,** |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|----------|-----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   |                                                                              | **2006** |                                                                                    |   | **2005**                                                                                                                                                 |   |   | **2006** |   |
| **Sales**                                                       |   |                                                                              | $        | -                                                                                       |   |                                                                                                                                                     | $      | - |   |   | $ | - |   |
|                                                            |   |                                                                              |     |                                                                                    |   |                                                                                                                                                     |   |   |   |   |   |   |   |
| **Operating                  Expenses**                         |   |                                                                              |     |                                                                                    |   |                                                                                                                                                     |   |   |   |   |   |   |   |
| Selling,                  general and administrative expenses   |   |                                                                              |     | 3,429                                                                                   |   |                                                                                                                                                     |   | 37,305 |   |   |   | 105,095 |   |
| **Total                  Operating Expenses**                   |   |                                                                              |     | 3,429                                                                                   |   |                                                                                                                                                     |   | 37,305 |   |   |   | 105,095 |   |
| **Net                  Loss**                                   |   |                                                                              | $        | (3,429                                                                                  | )      |                                                                                                                                                     | $      | (37,305 | ) |   | $ | 105,095 |   |
|                                                            |   |                                                                              |     |                                                                                    |   |                                                                                                                                                     |   |   |   |   |   |   |   |
| **Basic                  and Diluted Net Loss per Share**       |   |                                                                              | $        | (0.00                                                                                   | )      |                                                                                                                                                     | $      | (0.00 | ) |   |   |   |   |
| **Weighted-Average                  Common Shares Outstanding** |   |                                                                              |     | 7,710,843                                                                               |   |                                                                                                                                                     |   | 10,000,000 |   |   |   |   |   |

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**SCRAP        CHINA CORPORATION**

**(A        Development Stage Company)**

**CONDENSED        STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                           | ****For                  the Three Months**ended September                  30,** |     | ****For                  the Three Months**ended September                  30,** |   | ********For                  the                  period**************June                  15, 2005 (date of**inception)through**September 30,** |   |
|----------------------------------------------------------------|-----------------------------------------------------------------------------------|----------|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                           |                                                                              | **2006** |                                                                              |   | **2005**                                                                                                                                          |   |   | **2006** |   |
| **Cash                  Flows from Operating Activities:**     |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |
| Net                  loss                                      |                                                                              | $        | (3,429                                                                            | )      |                                                                                                                                              | $      | (37,305 | ) |   | $ | (105,095 | ) |
| Changes                  in assets and liabilities:            |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| Prepaid                  expenses                              |                                                                              |     | -                                                                                 |   |                                                                                                                                              |   | 4,000 |   |   |   | - |   |
| Accrued                  liabilities                           |                                                                              |     | 2,750                                                                             |   |                                                                                                                                              |   | (1,000 | ) |   |   | 7,750 |   |
| Payable                  to related party                      |                                                                              |     | 655                                                                               |   |                                                                                                                                              |   | 34,305 |   |   |   | 87,771 |   |
| **Net                  Cash Used in Operating Activities**     |                                                                              |     | (24                                                                               | )      |                                                                                                                                              |   | - |   |   |   | (9,574 | ) |
|                                                           |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                  Flows from Investing Activities:**     |                                                                              |     | -                                                                                 |   |                                                                                                                                              |   | - |   |   |   | - |   |
|                                                           |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                  Flows from Financing Activities:**     |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock            |                                                                              |     | -                                                                                 |   |                                                                                                                                              |   | - |   |   |   | 10,000 |   |
| **Net                  Cash Provided by Financing Activities** |                                                                              |     | -                                                                                 |   |                                                                                                                                              |   | - |   |   |   | 10,000 |   |
|                                                           |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| **Net                  Change in Cash**                        |                                                                              |     | (24                                                                               | )      |                                                                                                                                              |   | - |   |   |   | 426 |   |
|                                                           |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                  at Beginning of Period**               |                                                                              |     | 450                                                                               |   |                                                                                                                                              |   | 168 |   |   |   | - |   |
|                                                           |                                                                              |     |                                                                              |   |                                                                                                                                              |   |   |   |   |   |   |   |
| **Cash                  at End of Period**                     |                                                                              | $        | 426                                                                               |   |                                                                                                                                              | $      | 168 |   |   | $ | 426 |   |

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**SCRAP        CHINA CORPORATION**

**NOTES        TO CONDENSED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE        1-ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES**

**Organization        and Nature of Operations**
***—***

**Basis        of Presentation —**

**Business        Condition**
*** ***

**NOTE        2-PAYABLE TO RELATED PARTY**

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**ITEM        2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF        OPERATIONS**

**Plan        of Operation**

|   | 1. | General                    Administration for Quality Supervision, Inspection and Quarantine                    -                    AQSIQ |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Compulsory                    Certificate - CCC |
|--------|----|-------------------------------------------------|

**Off-Balance        Sheet Arrangements**

**ITEM        3 - CONTROLS AND PROCEDURES**

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**PART        II - OTHER INFORMATION**

| **Item                1.** | **LEGAL                  PROCEEDINGS** |
|----------------------------|----------------------------------------|

| **ITEM                  2.** | **UNREGISTERED                  SALES OF EQUITY SECURITIES AND USE OF                  PROCEEDS** |
|------------------------------|---------------------------------------------------------------------------------------------------|

| **ITEM                  3.** | **DEFAULT                  UPON SENIOR SECURITIES** |
|------------------------------|-----------------------------------------------------|

| **ITEM                  4.** | **SUBMISSION                  OF MATTERS TO A VOTE OF SECURITY                  HOLDERS** |
|------------------------------|-------------------------------------------------------------------------------------------|

| **ITEM                  5.** | **OTHER                  INFORMATION** |
|------------------------------|----------------------------------------|

| **ITEM                  6.** | **EXHIBITS** |
|------------------------------|--------------|

**Index        to Exhibits**

| (1) | Incorporated                  by reference herein filed as exhibits to the Company's Registration                  Statement on Form 10SB previously filed with the SEC on August                  18, 2005,                  and subsequent amendments made                  thereto. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Reports        on Form 8-K**

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**SIGNATURES**

|                                | Scrap                  China Corporation                                                                                                                                                                                                                                                                                     |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                                                                                                                                                                                                                                                                                                         |
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|                                |                                                                                                                                                                                                                                                                                                                         |
| November                  9, 2006   | /s/ Paul                Roszel                                                              |
|                                | Paul                  Roszel, President andChairman                  of the Board of Directors                                                                                                                                                                                                                               |
|                                |                                                                                                                                                                                                                                                                                                                         |
|                                |                                                                                                                                                                                                                                                                                                                         |
|                                |                                                                                                                                                                                                                                                                                                                         |
|                                |                                                                                                                                                                                                                                                                                                                         |
|                                |                                                                                                                                                                                                                                                                                                                         |
| November                    9, 2006 | /s/ Richard                Ivanovick                                                                                                     |
|                                | Richard                  Ivanovick, C.A., Chief Financial andAccounting                  Officer                                                                                                                                                                                                                             |

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