[SMM Analysis] the seventh batch of scrap copper approval documents announced that the support of scrap copper to refined copper consumption is expected to weaken.

Published: May 19, 2020 17:11

Import quota for the seventh batch of scrap copper and aluminum in 2020 announced

SMM5 on May 19th: the solid waste Center announced the details of the seventh batch of applications for import restrictions in 2020 (see table below). A total of 14 copper-related enterprises were approved this time, with a total import volume of 10423 tons. Compared with the previous batches, the approval distribution accords with the rhythm of more approvals and then less approvals each quarter.

Copper scrap

The first seven batches of approval this year totaled 540200 physical tons of scrap copper. According to customs data, the import volume of scrap copper from January to April was 305700 physical tons, and it can be roughly estimated that the remaining 200000 tons of scrap copper has not yet been used, while the import of scrap copper in April is only 80, 000 physical tons, which is a low level. even if the overseas scrap copper supply gradually resumes will improve the scrap copper import, but the remaining batch volume can meet the market demand at least before July, and maintain the expectation that the current approval volume is still sufficient. In addition, there are still great doubts in the market whether the standards of "recycled copper raw materials" and "recycled brass raw materials" can be implemented on July 1 as scheduled. Due to the impact of the epidemic, waste enterprises have not received the relevant implementation arrangements so far. We need to pay close attention to the following policy updates and their impact on the import of waste copper.

According to SMM statistics, a total of 237688 metal tons of scrap copper were imported from January to April, down 44.15% from the same period last year, or about 187890 metal tons. The huge scrap copper gap supports refined copper consumption obviously, but with the recovery of copper prices, the domestic scrap copper supply is gradually flowing out, and imported scrap copper is also expected to increase, and the supporting effect of scrap copper on refined copper consumption will be weaker.

"Click to participate in the second China (Yingtan) Copper Industry Summit Forum and the 15th China International Copper Industry chain Summit"

"these enterprises have signed up! (part of the list of participants is attached)

To sign up for the summit or apply to join the SMM industry exchange group, please scan the code:

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 to learn 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 May 2026 Air Conditioner Production Down 11.7% YoY
17 mins ago
China's May 2026 Air Conditioner Production Down 11.7% YoY
Read More
China's May 2026 Air Conditioner Production Down 11.7% YoY
China's May 2026 Air Conditioner Production Down 11.7% YoY
According to the latest report, the total production schedule for China's household air conditioners in May 2026 was 21.977 million units, down 11.7% YoY; of which household air conditioners had a production schedule of 20.355 million units, down 11.9% YoY; dehumidifiers had a production schedule of 745,000 units, down 12.9% YoY; and household central air conditioners had a production schedule of 877,000 units, down 6.0% YoY.
17 mins ago
Copper Plate/Sheet and Strip Industry Operating Rate Stays High
53 mins ago
Copper Plate/Sheet and Strip Industry Operating Rate Stays High
Read More
Copper Plate/Sheet and Strip Industry Operating Rate Stays High
Copper Plate/Sheet and Strip Industry Operating Rate Stays High
According to SMM, new orders in the copper plate/sheet and strip industry have declined recently. However, as previously received orders remain sufficient, current production schedules of copper plate/sheet and strip enterprises are full, and the industry operating rate stays high.
53 mins ago
Copper Enamelled Wire Industry Orders Continued Under Pressure
56 mins ago
Copper Enamelled Wire Industry Orders Continued Under Pressure
Read More
Copper Enamelled Wire Industry Orders Continued Under Pressure
Copper Enamelled Wire Industry Orders Continued Under Pressure
According to SMM, demand from end-use sectors such as new energy and power transformers currently remains robust; demand from traditional industries including industrial motors, home appliances, and two-wheelers showed mediocre performance, with the cooling industry experiencing a particularly notable pullback in demand, significantly dragging down the enamelled wire industry. Coupled with copper prices fluctuating at highs and the traditional off-season for the industry approaching, the operating rate of the enamelled wire industry is expected to continue its contracting trend going forward.
56 mins ago