SHANGHAI, Jul 17 (SMM) – The fourth quarter is expected to see lower quotas of aluminium scrap imports of 120,000 mt, compared with 361,000 mt in the third quarter, SMM estimates. This is likely to lower aluminium scrap imports in 2019 by 16% on the year, to 1.31 million mt.
Some 361,200 mt of aluminium scrap received approval in the latest 9th and 10th batches of approval for restricted metal scrap imports for 2019, compared with imports of 349,510 mt registered in the third quarter of 2018.
Major secondary aluminium producers in China with overseas scrap as feedstock, such as Gezhouba Zhanci, Lanxi Boyuan, Zhejiang Judong, Ye Chiu Group, Zhaoqing Dazheng, and Zhaoqing Nandu, obtained considerable amounts of quotas. The 9th and 10th batches basically covered all major Chinese secondary aluminium producers that use seaborne scrap.
Customs data showed that domestic imports of aluminium scrap climbed to 330,000 mt in April-May, as importers rushed to move foreign scrap metal into domestic markets before restrictions on July 1. SMM estimated that imports in the second quarter stood at 495,000 mt.
Restrictions on Category Six aluminium scrap imports since July 1 have yet to have significant impact on the market, with stables prices of overseas aluminium scrap.
