Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

French shipping company CMA CGM will be refusing scrap shipment destined to China to comply with Chinese regulatory changes that prohibit imports, dumping and disposal of scrap without producing specific import licenses.


Earlier, Maersk, Hapag-Lloyd and Mediterranean Shipping Company refused to carry scrap bound to China starting Sep 1. Hapag-Lloyd has however stated that their policy would be applicable only after Jan 1, according to company’s Aug 17 release.


The new Chinese law states that scrap shipments to China are prohibited except under specific licence which needs to be attained by the importer. This law is effective from September. The applicable licensing regime has been effective since August 1. China has taken the step to control environmental pollution by ‘solid waste’. China is focused on reducing imports of scrap during the latter half of the year and all scrap imports will be prohibited into China from January 2021 and the licensing regime will no longer be effective.


An import license will not be required for when a carrier transports scrap, expect hazardous scrap through Chinese regions. A license will, however, be required if the material is discharged at the port and are transit through PRC.


The new regime states that both the carrier and the importer will share several liabilities to return and dispose off the scrap material in the absence of proper license for any banned scrap materials. In such a case, a huge fine will be placed on violators.


Some recycled metals including copper and brass have been re-classified as recycled raw materials and imports are likely to continue. 

Leave a Reply

Your email address will not be published.