LONDON, July 28, 2017 /PRNewswire/ --
CRU understands that the Chinese government has moved to limit imports of Category 7 scrap types. CRU's Beijing analysts conducted a market survey, speaking with industry associations, processing facilities, and secondary plants in China so that we can understand the impact these restrictions will have on the copper and aluminium markets.
Our analysis suggests that the policy will have far reaching implications for the copper market and cause the off-shoring of some Chinese scrap processing. The impact on the aluminium market will be small but the policy will hasten the current trend of increasing domestic scrap generation and it will strengthen the current bullish sentiment in the Chinese aluminium industry.
Chinese government moves to limit scrap imports
The latest news out of China suggests that the China Nonferrous Metals Industry Association (CMRA) received a document the central government (including the Ministry of Environmental Protection) on July 25. This document gives notice that domestic scrap processing companies must stop importing the majority of Category 7 scrap from late 2018; namely scrap cables, scrap motors and scrap hardware (HS code: copper 7404,000.10, aluminum7602,0000.10). The central government is trying lower waste product imports into China because the harmful environmental impact of processing this waste.
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