Limited Impact on Scrap Aluminum Import from Management Measures on Solid Waste Import

SHANGHAI, Jul. 1 (SMM) -- The Ministry of Environmental Protection, the Ministry of Commerce, the National Development and Reform Commission, the General Administration of Customs and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued the “Management Measures on Solid Waste Import” recently, and stipulates the detailed requirements on overseas suppliers, pre-shipment inspection, domestic receipt, port inspection, customs regulation, import licensing, corporate governance, and other aspects concerning importing solid waste. The detailed requirements concerning import of wastes are favorable for improving China’s waste importation regulatory system. SMM believes any impact from this policy on imports of scrap aluminum will be limited.

The Measures speculate nine bans, including a ban on dumping, stockpiling, and disposal of imported solid wastes in China, a ban on trans-boundary movements of hazardous wastes through China, a ban on importing hazardous wastes, a ban on importing solid wastes for the purpose of heat recovery, a ban on importing solid wastes that can not be used as raw materials or can not be used harmlessly, a ban on importing solid wastes that China discharges or stockpiles large amounts and that have not yet been fully utilized in China, a ban on importing solid wastes that are not applicable to any China’s environmental protection control standards or related technical specifications and other mandatory requirements, a ban on re-export of solid wastes, and a ban on transporting solid wastes into China by delivery to order.  

According to SMM sources, China’s actual imports of solid waste exceeded 40 million mt during 2010, with imports of aluminum scraps of 2.85 million mt, accounting for 7.1% of total imports of scraps. Most imported aluminum scraps are used as raw materials for aluminum alloy production, and they are not imported for the purpose of heat recovery or for dumping, stockpiling, and disposal in China. In addition, since supply of domestic scrap aluminum is in shortage, and China’s recycling system still needs to be improved, secondary aluminum production still needs to rely heavily on imported scrap aluminum. With regard to re-exports, China has already been the final consumer of scrap aluminum, so the re-export of scrap aluminum generally does not exist. 

In summary, although the “Management Measures on Solid Waste Import” stipulates more stringent requirements concerning the import of solid waste, import of scrap aluminum has not been involved in the above-mentioned nine bans, so any impact on over imports of scrap aluminum is relatively limited.

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