Risks of disruptions to global copper scrap supply chain are growing as world authorities put drastic measures, including travel restrictions and border shutdowns, to stop the spread of the COVID-19 pandemic.

Malaysia, the biggest copper scrap supplier to

Here is a table showing the impact of the coronavirus on zinc supply outside China 

SHANGHAI, Mar 26 (SMM) &ndash; Risks of disruptions to global copper scrap supply chain are growing as world authorities put drastic measures, including travel restrictions and border shutdowns, to stop the spread of the COVID-19 pandemic.

&nbsp;

All major ports across the world have adopted a 14-day quarantine period for vessels arriving from or transiting through countries that have been hit hard by the virus. Aside from shipping restrictions, factories are ordered to shut down to curb the movement of people.

&nbsp;

Malaysia, the biggest copper scrap supplier to the top metals consumer China and the regional hub for non-ferrous metal scrap recycling in Southeast Asia, has announced a nationwide lockdown, which will remain in place until at least the middle of April.

&nbsp;

<img alt="" src="https://imgqn.smm.cn/production/admin/news/en/pic/gZZnz20200326121723.png?imageView2/2/w/800" style="height:484px; width:762px" />

&nbsp;

SMM learned that copper scrap exports from Malaysia have been suspended. Most of scrap processors in the country have been shuttered, while those still in operation are to be closed soon as they are running out of raw materials after imports have been disrupted.

&nbsp;

Customs data showed that China&rsquo;s copper scrap imports via general trade were 388,000 mt in the second half of 2019, with those from Malaysia accounting for more than 20%, or about 85,000 mt.

&nbsp;

Declaration of state of emergency by the hardest-hit European countries and the US also adds to the disruption risks of global copper scrap supply chain, as those countries are major copper scrap suppliers to dismantling plants, smelters, refiners and processors in China and Southeast China.

&nbsp;&nbsp;

China copper scrap imports dropped 50.5% in January-February

&nbsp;

Date from China customs showed that China imported 119,520 mt of copper scrap in the first two months of 2020, halved from 241,522 mt in the same period a year earlier.

&nbsp;

<img alt="" src="https://imgqn.smm.cn/production/admin/news/en/pic/IBJyc20200326121752.png?imageView2/2/w/800" style="height:421px; width:800px" />

&nbsp;

The sharp decline came despite sufficient import quotas approved by the Chinese environmental authorities. <a href="https://news.metal.com/newscontent/101038535/China's-4th-batch-of-copper-scrap-import-quotas-for-2020-further-shrank-in-volumes" target="_blank">China has issued more than 305,000 mt of import allowance for copper scrap for this year, compared to 560,600 mt for the second half of 2019.</a>

&nbsp;

Potential disruptions to the global supply chain are set to further tighten copper scrap supply in China, where imported materials accounts for 60% of its total copper scrap supply.

&nbsp;

Copper scrap prices in China exceeded copper prices last week, further biting into profits at copper rod producers using copper scrap as feedstock. That will keep operating rates at those plants at low levels in the short term.

&nbsp;

Chinese copper rod producers using copper scrap as feedstock operated at an average rate of 6.47% in February, down 38.01 percentage points from the same month of 2019, according to an SMM survey.