Thailand's proposed import restrictions on certain recycled metals and rubber have stalled scrap trade to the southeast Asian country as a lack of clarity around the measures prompts some buyers to cancel or delay cargoes.
The Thai Customs Department on 21 October recommended new curbs on shipments of recycled steel, copper, aluminum and rubber as part of efforts to combat "illegal imports of electronic and hazardous waste", the Bureau of International Recycling (BIR) said in a notice to the trade group's members on Thursday.
Details remain sparse around what the restrictions would entail or when they would take effect, but no outright ban is in force currently, BIR noted.
Still, buyers were quick to react to the news, with one US zorba supplier saying that a customer canceled multiple cargoes that were already booked but had yet to be shipped. Some US aluminum scrap sellers have already received multiple requests from consumers to hold shipments because of the uncertainty around the proposed measures, while others' focuses have shifted to finding alternative homes for their material or attempting to reroute cargoes already on the water.
A ferrous scrap exporter on the US west coast said Thai customs authorities began scrutinizing loading photos of containerized scrap more heavily last week. The trader had to divert some Thailand-bound shipments to other southeast Asian countries last minute because buyers in Thailand thought the scrap would not clear customs.
Market participants have noted that Thailand has accelerated physical inspections at Laem Chabang and other ports in recent months, with the heightened scrutiny primarily affecting only the timing to clear containers. Some suppliers did have cargoes returned to them following customs searches, but the recommendations this week seemingly take the government's efforts a step further, sources said.
Thailand has been the top destination for US aluminum scrap through August on the year, accounting for around 340,000t — or 20pc — of total exports in that timeframe, US customs data showed. The country primarily takes lower-grade aluminum scrap that cannot be widely consumed in the US, including zorba, which can contain circuit boards because of its automotive origins.
Thailand imported 1.93mn t of ferrous scrap through August, up 35pc on the year, with the US supplying 766,000t, or about 40pc, Thai customs data showed.
Some market participants questioned Thailand's reported ferrous scrap import volumes, suggesting some material classified as ferrous scrap could instead be misclassified non-ferrous scrap.
For US ferrous scrap shippers, Thailand's absence would primarily affect container shipments of lower-quality ferrous grades. The US previously shipped both bulk and containerized scrap to Thailand, but exporters have not shipped a bulk cargo to the country since June 2021, US customs data showed.
