China cuts third quota scrap metal import volume

China has cut the scrap metal import quota volume to less than 9,000t in the third quota for delivery in January and March.

China's Solid Waste and Chemicals Management Centre, an agency of the environment ministry, yesterday issued the quota for 8,730t of scrap metal, less than a quarter of the previous quota of 36,390t issued in early January.

The new quota for copper scrap — under harmonised tariff code 7404000090 — totalled 4,620t. Of this, 740t was allocated to the port of Tianjin and 3,880t to Shanghai-Ningbo.

The aluminium scrap quota — under harmonised tariff code 7602000090 — totalled 1,440t, with 770t going to Taicang in southern China and 670t to Ningbo.

Ferrous scrap volumes were issued at 2,670t for deliveries to Shanghai and Ningbo.

The total Chinese scrap import quota currently approved for 2020 is 592,370t, of which copper accounts for 302,071t, aluminium 284,449t and ferrous 5,850t.

As China has announced that it will implement the new scrap metal import standards from 1 July, the existing import quota system is expected to continue operating until the second quarter. Under the new rules, copper, brass and aluminium scrap that meet the stringent standards will be reclassified as raw material and have no import restrictions.

In order to encourage suppliers and buyers to meet the new scrap standards, import quota volumes may fall in the coming months.

Chinese copper and aluminium scrap imports dropped sharply last year as a result of the wider import restrictions, alongside the quota's introduction on 1 July. China's imports of copper scrap last year plunged by 38.2pc year on year to 1.49mn t, while aluminium scrap dropped by 11.5pc to 1.39mn t.

Yoke Wong