China Delays Launch of Scrap Metal Reclassification Policy

The proposed policy is expected to raise the required metal content in scrap imports, while further minimizing impurity levels.

SEATTLE (Scrap Monster): The introduction of proposed scrap metal reclassification policy by the Chinese authorities is likely to be delayed until March next year. The launch was initially planned for end-2019, but has now been delayed on account of the complexity associated with formulation of the new rules.

According to various industry participants, March 2020 is now considered as the earliest date of rollout of the new policy. Meantime, the associated complications could push it until June also. The delay in rules will extend the decline in scrap flow into the country, as exporters seek clarity on shipment specifications. Until the implementation of the reclassification policy, the quarterly import restrictions under quota system will prevail, Chinese authorities noted.

The proposed policy is expected to raise the required metal content in scrap imports, while further minimizing impurity levels. It calls for complex inspection procedures, whereby every batch of imported scrap will be sampled and tested. Further, it also includes stringent rules with regards to size of packaging and the label on them, which in turn will lead to escalated processing costs.

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Meantime, global scrap industry expressed fears that the proposed requirements are exceedingly rigid, the implementation of which would literally block global scrap trade flows.

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