Fresh inspections likely to squeeze scrap supplies to China

By Paul Ploumis

SEATTLE (Scrap Monster): The recycling facilities in China are likely to undergo a fresh round of inspection by the end of this month, which is feared to further slow down the imports of scrap into the country. The Chinese scrap import volumes may shrink drastically, in the event of closure of recycling facilities following the inspection. Reportedly, an inspection team comprising of nearly 1,700 officials will inspect licensed recycling facilities in around 20 Chinese provinces to ensure that the operations of these facilities comply with government regulations to control environment pollutions caused by them.

The authorities had carried out extensive inspections at recycling facilities during this month, following which, almost 60% of the scrap import permits are under threat of revocation. The inspection carried out by the Chinese Central Environment Protection Department in eastern Zhejiang province had revealed that several of the facilities were in “shut down state”. The inspectors had cited serious violations including damages to pollution control equipment, out-of-date pollution control mechanisms and manipulated record keeping.

According to China Scrap Plastics Association (CSPA), the country had temporarily stopped imports of some waste and scrap authorized after June 1st. The affected materials include waste, parings and scrap of plastics; other waste paper or paperboard, including unsorted waste and scrap; mixed waste metals; waste electric motors; waste wires.

Earlier, the Bureau of International Recycling (BIR) had warned its members to be vigilant in their scrap shipments to China. It had cautioned the members of the possibility of China tightening controls on imported scrap and had instructed them to make necessary adjustments to their business models in order to stay updated with the newly imposed regulations by Chinese customs authorities.

The new round of inspection comes in the midst of the one-year long ‘National Sword’ campaign launched during the early months of 2017. The campaign carried out in co-operation with the Excise Department targets imported scrap materials with special focus on illegal shipment of industrial waste, electronics waste, plastics and other solid waste. National Sword 2017 is aimed at boosting domestic scrap collection and recovery by putting tight controls on imported waste and scrap.

Meantime, scrap exporters fear that the Chinese action would be the first step towards implementing a complete ban on imports of select scrap commodities. Further, more scrap categories are likely to be added to the list of prohibited items by 2018.