China to implement new scrap metal standards from July

Market: Metals
20/01/20

China has approved the recategorisation of high-grade copper, brass and aluminium scrap as raw material, with no import restrictions. The new standards will be implemented from 1 July.

The new standards were announced by the State Administration for Market Regulation (SAMR) and most details are unchanged from the proposal that Argus published in October.

The previous draft proposal set purity levels of 98pc for aluminium cast scrap with a 0.7pc allowance for metallic impurity, while for zorba (shredded aluminium scrap) the minimum aluminium purity was 91pc with a 0.9pc allowance for metallic impurity.

The draft also grouped recyclable copper into seven categories, with imports required to meet copper content levels of 96.00-99.9pc, depending on product.

Imports of copper, brass and aluminium scrap that do not meet the new standards will be restricted and monitored by the environment ministry through a quota system that came into effect on 1 July last year.

Many scrap suppliers have criticised the new standards as overly stringent, saying they could deter smaller dealers from selling into China and increase export costs.

But recategorisation is the only way to circumvent China's plan to ban scrap imports by 2020, according to a source at one Chinese consumer. "China's objective is to ban scrap metal imports, [the re-categorisation to higher standards] is a means for survival, it is better than a complete ban," the source said.

The environment ministry said on 17 January that China will meet its "zero solid waste import" target by end of this year. Beijing also plans to restructure the domestic recycling industry, by "forcing domestic recyclers to shift from being small and scattered and developed into high-quality organisations".

China is the world's largest scrap metal buyer, but imports have fallen sharply since the government started imposing restrictions in 2018.

By Yoke Wong

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Viewpoint: US tariffs, new EAFs may alter scrap flows

24/12/24

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24/12/24

Viewpoint: US tariffs, new EAFs may alter scrap flows

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24/12/24

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