No Major Trouble after China Bans Mixed Scrap Import

Metal scrap traders in Japan and China carefully deal the scrap cargo to China after China banned mixed scrap import from June. According to Japanese dealers, the import procedure is smooth so far. A Japanese exporter said the regulation could screen dealers with better quality control system. However, the regulation could be risk for scrap trading to China when the trading volume would recover from current low level.

China banned mixed scrap import to prevent tax evasion. The scrap dealers should separate metals in container while the dealers with bulk carrier should apply the tax after they separate the metals at port yard or bonded storage.

The dealers concerned they couldn’t apply the tax after they unloaded all metals to separate. However, they can pass the authority check through traditional procedure as before. A Japanese dealer said the authority conducts severer for container open check and X-Ray check than before. Japanese dealers have no trouble so fat but some exporters were apparently ordered to ship the cargo back.

Chinese scrap import is slow since February with less appetite under the slump market. Japanese scrap exporters anticipate the severer procedure by Chinese authority could impact on the smooth trading if Japanese copper scrap export would recover monthly 35,000-40,000 tonnes level from only 20,456 tonnes in May.