Feb imports of copper scrap shrink 66.7%

Suppliers of secondary copper held onto their cargoes early last week when copper prices surged, tightening supply noticeably. Traded prices of #1 bare bright copper rose sharply, resulting in a sharp decline in the price spread between copper cathode and copper scrap.

The fluctuation band of aluminium scrap taint was 300 yuan/mt last week, while that of aluminium scrap tense was 200 yuan/mt. Poor sales at secondary aluminium producers pressured aluminium scrap prices. Import restrictions kept supply of aluminium scrap tense tight. Aluminium scrap prices will remain under downward pressure and the price difference between primary aluminium and aluminium scrap will continue to expand before the completion of the next pricing cycle of secondary aluminium in early April.

China imported 47,000 mt of aluminium scrap in October, down 40.4% on the month, and down 21.5% on the year, and imports totalled 680,000 mt in the first ten months of 2020, down 48% from the same period last year, the latest customs data showed. 

Leo Yi, senior analyst at SMM, explained the challenges posed by the new solid waste law to China’s aluminium scrap supply and operations at secondary aluminium producers

China approved just 121,000 mt of aluminium scrap for imports in its 12th batch of approvals, bringing the total approved amounts to 818,000 mt so far this year, according to the China Solid Waste and Chemicals Management.

China's environmental authorities on Monday issued the ninth batch of copper, aluminium and steel scrap import quotas for 2020, which was the largest since April.

The long-anticipated new standards for high-grade copper scrap and aluminium scrap metal—due to come into force on July 1–has yet to be implemented at China’s customs, as the procedure for importing material under these standards has not been finalised, SMM learned from several traders, fabricators and smelters.

A total of 74 vessels carrying 12.37 million mt of iron ore arrived at major Chinese ports in the week ended June 13, SMM estimates. This was down 3.01 million mt from the prior week and down 70,000 mt from a year earlier.

Brazil's Vale has resumed operations at its distribution centre in Malaysia, the Teluk Rubiah Maritime Terminal (TRMT), but the fast spreading of the coronavirus in Brazil may keep its iron ore shipments from rebounding significantly in the near term. 

China’s imports of aluminium scrap expanded in March, as secondary aluminium producers in the country rushed to fulfill backlogged orders after suspending production for more than a month due to the COVID-19 outbreak. Data from China customs showed that China imported 77,000 mt of aluminium scrap last month, down 39.1% from March 2019. That brought total imports in the first three months of 2020 to 199,000 mt, down 40.1% from the same period last year.