China issued 2nd batch of copper scrap import quotas for 2020

Published: Jan 9, 2020 10:51
China granted import allowances for 26,566 mt of high-grade copper scrap in the second batch of quotas for this year

SHANGHAI, Jan 9 (SMM) – China's environmental authorities on Wednesday issued the second batch of copper scrap import quotas for 2020, further assuaging fears of a supply shortage before imports of “solid waste” are completely banned by the end of the year.

The China Solid Waste and Chemicals Management Bureau, a unit of the Ministry of Ecology and Environment, granted import allowances for 26,566 mt of high-grade copper scrap in the second batch of quotas for this year, compared to 270,885 mt in the first batch.

Allowances in the two batches amounted to 297,451 mt. This is estimated to contain 229,961 mt of copper, with a Cu content of 80%, the average grade for imported volume in 2019.

In the first quarter of 2019, China imported 365,000 mt of copper scrap, translating to about 280,000 mt of Cu content.

Worries about copper scrap supply among Chinese scrap users have abated as import quotas for the first quarter have been issued early and are ample enough to avoid disruptions to operations.

The imminent introduction of the standards on recyclable copper raw materials, which will exempt high-purity copper scrap from the licensed quota-based import system, is also expected to help ease supply tightness. These standards are likely to come into force in the second quarter at the latest, and the MEE said in December that it has completed the review over these standards.

Besides, Chinese copper recyclers have been switching to alternative feeds such as remelt ingot. Customs data showed that China’s imports of remelt copper ingot surged in the second half of 2019.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
China's copper social inventory destocked slightly WoW, with significant divergence in regional trends [SMM weekly data]
21 mins ago
China's copper social inventory destocked slightly WoW, with significant divergence in regional trends [SMM weekly data]
Read More
China's copper social inventory destocked slightly WoW, with significant divergence in regional trends [SMM weekly data]
China's copper social inventory destocked slightly WoW, with significant divergence in regional trends [SMM weekly data]
21 mins ago
Inventory Continuous Destocking Pushes Shanghai Spot Copper Premium Center Higher [SMM Shanghai Spot Copper]
40 mins ago
Inventory Continuous Destocking Pushes Shanghai Spot Copper Premium Center Higher [SMM Shanghai Spot Copper]
Read More
Inventory Continuous Destocking Pushes Shanghai Spot Copper Premium Center Higher [SMM Shanghai Spot Copper]
Inventory Continuous Destocking Pushes Shanghai Spot Copper Premium Center Higher [SMM Shanghai Spot Copper]
[Shanghai Spot Copper] Looking ahead to tomorrow, the early-month procurement cycle is continuing, downstream demand is still being released, and both buying and selling sentiment have been rebounding, keeping market trading activity relatively brisk. On the supplier side, after low-priced cargoes were rapidly absorbed, discounted cargoes became hard to find in the market, and suppliers developed a stronger willingness to hold prices firm. Buyers’ parity bids could not be executed. Due to scarce availability, premiums for high-quality copper held at the high level of 80-100 yuan/mt, providing support to overall premiums. On the inventory front, SMM data showed that social inventory in the Shanghai region recorded 126,500 mt, down 7,700 mt WoW from Monday; in the Jiangsu region, social inventory recorded 36,200 mt, down 5,000 mt WoW from Monday, with both regions showing a destocking trend. Overall, driven by the confluence of early-month demand release, suppliers holding prices firm, and inventory destocking, spot Shanghai copper against the SHFE 2607 contract is expected to remain at a premium tomorrow, maintaining an overall strong trend.
40 mins ago
Spot Market Supply Tight, Offers Rise; Buyers and Sellers Diverge [SMM Yangshan Spot Copper]
2 hours ago
Spot Market Supply Tight, Offers Rise; Buyers and Sellers Diverge [SMM Yangshan Spot Copper]
Read More
Spot Market Supply Tight, Offers Rise; Buyers and Sellers Diverge [SMM Yangshan Spot Copper]
Spot Market Supply Tight, Offers Rise; Buyers and Sellers Diverge [SMM Yangshan Spot Copper]
2 hours ago