China to impose steel scrap import standards from 1 Jan

China is to implement its new ferrous scrap import standards from 1 January 2021 and plans to imminently announce further details necessary to enable imports to begin.

The Bureau of International Recycling (BIR) said today that China's State Administration for Market Regulation issued the national standard on "Recycling Steel and Iron Raw Materials" on 14 December. This move essentially marks a formal final approval of the draft standards published in early November that set out physical specifications for six groups of scrap metal that would be classed as raw material eligible for import.

BIR said the published standard stipulates the terms and definitions, technical indicators, inspection methods, and acceptance rules of recycling steel raw materials, but no further exact information was released. The Chinese regulator said the whole text of the standard will be issued to the public early next year.

The regulator also said that following the publication of the standard, "relevant ministries and commissions will jointly issue the 'Announcement on Regulating the Management of Recycling Iron and Steel Raw Materials Import Management' based on actual conditions to promote and allow the import of products that meet the new national standard." It is likely that this follow-up announcement will contain the information necessary to clear scrap exporters' confusion over what grades will be permitted for import by Chinese buyers, and the full inspection and customs parameters in which they must operate.

If the clarifying announcement appears within the next two weeks then it is possible that Chinese imports of ferrous scrap could begin in January, as the national standard is formally set to be implemented from the start of the month. If it takes longer, some potential sellers to China might hold off from rushing to sell, especially given that global demand is currently so strong and availability is tight. But other exporters may look to gain first-mover advantage and ship trial cargoes for January delivery on the risk that they might not meet the new standards and be rejected.

By Ronan Murphy