SHANGHAI, Jun 25 (SMM) – China imported 177,200 mt of aluminium scrap in May, up 57.8% on the year and up 15.81% on the month as importers rushed to move the seaborne scrap metal into domestic markets before import restrictions on July 1.
In April 2018, a higher tariff of 25% on American aluminium scrap lowered imports the next month. The lower base also accounted for the year-over-year growth in imports last month.
On Thursday June 20, China issued the 9th batch of quotas for metal scrap imports for the third quarter, allowing 54,256 mt of aluminium scrap to enter China. This covered 16 companies in Zhejiang province.
SMM expects another batch of approval to be released at the start of July as most Chinese importers of aluminium scrap are located in Jiangsu and Guangdong provinces.
Imports of aluminium scrap in June are expected to remain flat on the year, with arrivals considerably falling at the end of June.
Import restriction on Category Six aluminium scrap under HS code 760200090 will begin from July 1.