Chiao highlights major shift in non-ferrous scrap processing

Worldwide: Two of the latest announcements from the Chinese authorities will only exacerbate the redirection of scrap flows from China to ASEAN and Indian subcontinent countries, it has been suggested in the latest Non-Ferrous Metals World Mirror published by the BIR world recycling organisation.

In April, China’s ministry of ecology and environment (MEE) announced that all mixed non-ferrous scrap – including copper and aluminium cables, electric motors, scrap electrical equipment and stainless steel scrap (so-called Category 7 scraps) – will be totally banned from importation by December 31 this year.

And on May 3, CCIC North America was suspended from issuing certificates on all US scrap metal and paper for the month from May 4 to June 4. Regarding the CCIC suspension, divisional president David Chiao laments: ‘This sudden announcement has been made without any warning, giving no time for anyone to react and focusing specifically on US-origin metals and papers, including Category 6 items.’

US-based divisional vice president Andy Wahl adds: ‘Although this may seem at first glance to affect only the North American market, it will resonate worldwide with many unpredictable impacts on pricing, logistics, etc.’ Chiao highlights a ‘new trend’ in scrap non-ferrous and mixed metal flows, with Chinese consumers moving away from China to ASEAN countries as well as those in the India subcontinent.

But he warns: ‘The question now is “How many more years will these new markets last before they follow in China’s footsteps if we don’t pay attention to our quality and environmental consciousness?”’

According to Ma Hongchang, BIR’s advisor on regulatory and policy developments in China, the MEE approved 10 batches of imported solid waste in the first four months of this year. Amounting to 10.106 million tons in total, this included 9.191 million tons of scrap paper, 644 096 tons of mixed metals, 50 130 tons of scrap plastics and 220 246 tons of vessels for salvaging.

This article is based on the latest Non-Ferrous Metals World Mirror produced by the BIR world recycling organisation for the benefit of its members.