LONDON, July 23, 2020 /PRNewswire/ -- China's new standards for scrap imports cause inventory build-up. New standards for the imports of aluminium scrap into China came into effect on 1 July. The new standards are set to replace the current quota policy in place since July 2019.
However, Chinese customs have not yet released key information regarding the specific HS codes for scrap shipments under the new policy. Without the codes, scrap traders have been unable to ship their material into China, which according to various reports led to an inventory build-up in nearby countries.
Once the new codes are issued, scrap that meets the specifications will be categorised as raw material and will be free of import restrictions. Until then, the current quota system will prevail.
More Chinese companies applied for quota in July
On 6 July, Chinese authorities released the largest quota for aluminium scrap imports (209,660 t) since December. Over 50 Chinese companies applied for quota in July, up from 5 in June. This is linked to the current confusion around the new scrap import standards and a sign of strong Chinese demand.
New law in September will give clarity on China "waste policy"
So far in 2020 China has issued quotas for 693,659 t of aluminium scrap imports, but the policy is set to expire next year. In 2021, China plans to ban the import of solid waste entirely. According to the Bureau of International Recycling (BIR) a newly revised "Law on the Prevention and Control of Environmental Pollution by Solid Wastes" will come into force on 1 September 2020. The law will clarify the legal requirements for the identification of attributes of imported goods suspected to be solid waste.
Chinese secondary producers adapt to new reality
As mentioned in our last report, Chinese secondary producers have partially offset the lack of overseas scrap by importing more secondary alloys under the HS code 76012000. These alloys are categorised as secondary ingot, which does not have import restrictions, and are typically not standard secondary ingot specification (DIN 226/ADC21). The ingot is simply scrap remelted into an ingot, with little sorting. The ingot is then remelted by domestic secondary producers who refine it into the required grade.
Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2020/china-aluminium-scrap-importers-adapt-to-new-rules/
Read more about CRU: http://bit.ly/About_CRU
About CRU
CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.
Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.
CRU employs over 280 experts and has more than 11 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.
When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.
CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.
SOURCE CRU
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article