SHANGHAI, June 3 (SMM) -- China's new regulations on imported scrap copper came into effect on June 1st. Major points in the new regulations are classification of shipments, and restrictions on the ports which can be used. The process of importing scrap copper will be more standardized, legal, and will help prevent illegal activities based on the new policy.
So far, imports of scrap copper have been limitedly affected by the new regulations, as market has made response to the implementation of new regulations in advance, traders said. However, customs clearance of scrap copper is slower, as Customs have strengthened inspections over scrapped copper imports. Some importers said it needs around 3 weeks to complete customs clearance now. One medium-size scrap copper trader in Ningbo said that it only took 2-3 days to finish customs clearance before the implementation of the new regulations, but now customs clearance may not be done in 2-3 weeks. In addition, classification of shipments has increased workload and costs as well, and longer customs clearance and higher costs will add to overall costs and prolong the period of circulation. Meanwhile, volatile copper prices in recent days also add to the risks. It is hoped that Customs can make customs clearance more efficient while intensifying inspections.
SMM believes that new regulations on imported scrap copper have lagging-effect on the market. Since the new policy narrows importer profits from higher costs, some traders will likely hold falling interest in imports, and this will be reflected in the future. The new regulations on imported copper aim to further standardize import market of scrap copper, and it is inevitable to see some inconvenience from the policy on the market at the initial stage of its implementation, such as longer customs clearance. The condition is expected to improve after a period of time.
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