Global: In a surprise move adding to recent trade sanctions, the Chinese government has suspended with immediate effect the inspection operations of CCIC North America for the period up to June 4. As a result, no certificates can be issued.
‘The pre-shipment inspection system has been temporarily closed,’ confirms a statement from the US Institute of Scrap Recycling Industries (ISRI). ‘We are told that the Chinese government will accept shipments that were sent prior to May 3 with CCIC certificates, although they will be subject to 100% inspections and are not guaranteed entry.’
And the association adds: ‘There is no doubt that this will severely impact US scrap exports to China.’ ISRI is ‘working aggressively to gain more information and to find a way to resolve this situation as quickly as possible and in a way that minimises the impact on our members’, the statement continues.
This week, a cabinet-level delegation from the US government is in China for talks on trade. ‘We have informed them of this situation in the hopes that a resolution can be sought out,’ ISRI also notes.
Arguing that this move ‘will put the entire market under additional stress’, the BIR world recycling organisation quotes CCIC North America as stating: ‘Suspected thermosetting plastic, metal scrap containing powdery substances, special papers that are hard to identify, and anything that is suspected to be hazardous will be sent to a laboratory to complete a test analysis.’
Scrap consumers in China have already been notifying US-based suppliers of their intention to suspend all purchasing activities pending a resumption of the inspection system.
Meanwhile, exporters have bemoaned the move by the Chinese government and, in particular, the suddenness of its implementation.
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