China issues 9th batch of metal scrap import quotas in 2019

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.

In recent years, the steel industry has witnessed a series of reforms. From key words such as the "supply-side reform" in 2016, the "capacity reduction" in 2017, the "ultra-low emission transformation" in 2018, and the "accelerating state-owned enterprise reform" in 2019, "high-quality development" in 2020 and "carbon peak", "carbon neutrality", "reduction of crude steel output", "promoting mergers and reorganization of the steel industry", "high-quality development of the steel industry” in 2021, we can see that China's steel industry is gradually moving towards green development.

Many factories and traders cleared out copper scrap inventories before CNY. Newly produced copper scrap is unavailable until production resumes for a period of time after CNY. This, together with reluctance to sell amid bullish sentiment, resulted in limited amounts of copper scrap that was available in the market after CNY.

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.

SMM China Steel Scrap & EAF Monthly Keeping you in touch with the Chinese ferrous metals markets

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.

China’s industry bodies have kicked off the formulation of standards on imported recycled iron and steel, which will reclassify high-quality ferrous scrap as recyclable materials that may be exempt from the upcoming ban on the so-called “solid waste” imports.