China lifts import ban on scrap metals as coronavirus recovery heaps pressure on domestic metal supply

China has lifted its import ban on some high-quality scrap metals after several years of restrictions, indicating a move towards more recycling to meet a shortage of raw materials caused by the country’s strong economic recovery.

The increase in metal scrap imports will relieve pressure on domestic supplies and cut raw material prices that have been driven up by domestic demand. It will also help reduce emissions caused by mining.

On Monday, the Ministry of Ecology and Environment relaxed import restrictions on high-grade copper, aluminium and brass scrap, allowing these products to be freely imported from November 1. The special announcement removes their classification as solid waste.

“In theory, the implementation of the new standard will remove the restrictions on scrap imports and ease the shortage in the domestic market. Moreover, China’s copper scrap market will [now] be determined by supply and demand, rather than policy factors,” a recycling source from the eastern province of Zhejiang told metal analyst Mysteel Global, referring to the import quota system.

This mirrors an announcement from the China Solid Waste & Chemicals Management Centre (CSWCM) in July that it was considering loosening its quota on imports of scrap metal as the Chinese market was running short of brass, copper and aluminium alloy scrap amid surging industrial activity after pandemic lockdowns were lifted, S&P Global Platts said in a recent note.

While there has been a ban on imports of scrap metals since 2017, not all metal scrap imports have been curbed. Instead, the state-backed CSWCM administers an import quota system that drip feeds the domestic market.