Japan

Latest developments affecting the domestic recycling market have included new regulations for scrap yard operations in the Tokyo metropolitan area which are said to be negatively impacting established recycling businesses.

Yards are prohibited from creating scrap piles outside and are required to build high walls as well as to communicate their actions to local residents, with local governments picking up none of the associated costs. These new regulations are heaping pressure on smaller companies lacking the finances to make such investments, mostly long-established, family-owned businesses. Some companies have already moved their yards outside the Tokyo area but there is concern these regulations will ultimately be extended nationwide.

In terms of what is happening on the markets, the relaxation of Chinese import restrictions has triggered an increase in scrap prices. Domestic demand remains low for copper owing to higher prices and the effects of a shrinking economy. As for aluminium, the new HS Code categorisation is expected to generate more precise trade input and output flows.