China Announces First Set of Quotas for Scrap Metal Imports

SEATTLE (Scrap Monster): The Chinese administration has issued the first batch of scrap metal import quotas. The quotas, granted to a total of 123 importers, will be valid for the third quarter of the current year, after which they will have to reapply. Further import quotas for various categories of scrap metals will be issued in the forthcoming weeks. China had earlier declared that import quotas will be issued before end of June this year.

According to official data, copper scrap (HS code 7404000090) quotas totaled 240,796 metric tons, whereas the granted volumes for aluminum scrap (HS code 7602000090) totaled 54,256 metric tons. In addition, the list also include import quota of 14,968 metric tons covering six grades of ferrous scrap metals.

The majority of companies that are granted quotas are copper scrap importers in east-central cost, especially in the regions of Jinhua, Ningbo, and Taizhou. The first batch is said to cover only 30-40% of the required tonnage for copper smelters in the region. Meantime, the approved volumes of aluminum scrap import correspond to smelter requirements for less than two months, as per estimates by sources.

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The Chinese administration is expected to issue additional import quotas covering southern China provinces including Guangdon as well as for the companies in north, which have not been covered in the first batch. The second batch of copper and aluminum scrap quotas is likely to be released in early-July.

It must be noted that China has already decided to restrict imports of high-grade Category 6 scrap including copper, aluminum and ferrous scrap starting July this year.