Non-Ferrous Metals Scrap Traders Anticipate a boost from China

Metal prices will struggle to maintain current levels as the true economic impact of the COVID-19 pandemic begins to emerge, it was suggested at the Non-Ferrous Metals commodity session of the BIR Global eForum on June 3. On a more positive note, however, it was argued that China’s new “recycled material” standards covering brass, copper and cast aluminium alloy imports could significantly benefit scrap trading.

The recycled material reclassification is scheduled to enter force in China on July 1 this year but, at the time of the eForum, there had been no official announcement in English about the specifications to be adopted or about how the change would impact CCIC inspections, explained BIR Non-Ferrous Metals Division President David Chiao of Uni-All Group Ltd and Shen Dong of Omnisource LLC. The former confirmed updates would be provided as soon as available while the latter said “Traders believe this new policy will have positive outcomes for the future of scrap trading worldwide.”

Under this fundamental shift in Chinese policy, any materials that continued to be classified as “scrap” could not be imported into China after December 31 2020, Mr Chiao stressed. It was also noted that the seventh batch of import quotas issued on May 18 had included 10,423 tonnes of copper scrap and 1480 tonnes of aluminium scrap, bringing the respective totals for the year to date to 540,184 tonnes and 478,159 tonnes.