China issues import quotas for another 7,970 mt of copper scrap

SHANGHAI, Dec 4 (SMM) – China on Wednesday granted a new batch of import quotas of 7,970 mt for high-grade Category Six copper scrap, down from the approved volume of 11,110 mt in the previous batch.

This is expected to be the last issuance on copper scrap quotas for 2019, and more quotas for 2020 will be released before end December. 

The China Solid Waste and Chemicals Management Bureau has allowed a cumulative total of 560,700 mt of Category Six copper scrap to enter China so far, following import restrictions on such materials on July 1. 

This equates to 449,000 mt in Cu content, based on an average grade of 80%, SMM calculates.  

Customs data showed that China imported 468,100 mt of copper scrap in July-October. This means that only 92,600 mt of quotas were left for November and December. 

According to SMM calculations based on customs data, domestic imports of copper scrap stood at 96,756 mt in October, down 41.15% from a month ago and 53.29% from a year ago.

Most companies had used up their import quotas since mid- to late- October, and arrivals at ports in the fourth quarter were mostly previously-ordered cargoes, SMM learned. 

A few number of importers have started to order copper scrap products for February 2020 delivery. 

Scrap import quotas will continue to shrink in 2020, but Chinese authorities are expected to implement reclassification policy in March or the second quarter next year, allowing high-quality copper scrap to enter as a resource before the import of copper scrap is banned by end 2020.