ADC 12 exporters in India are expecting some impact on export orders from China after the Chinese government allowed import of copper, aluminium and brass scrap meeting new standards announced by China’s Ministry of Ecology and Environment.
Manufacturers told Davis Index that China may renegotiate the export price for ADC 12 which was currently at $1,775/mt level. Few manufacturers from North India expect that export orders to China may drop once it starts accepting aluminium scrap. Manufacturers in Gujarat claimed that there would be limited impact on export orders as China would import aluminium scrap of high standards only.
Nonferrous scrap traders in South East Asia told Davis Index that they expect imported scrap prices to rise.
China’s environment, industry and commerce ministries jointly issued a statement that imported scrap material covered under the custom codes 7404000030 for high-grade copper scrap officially known as recycled copper raw material, 7602000020 for aluminium scrap and 7404000020 for brass scrap will be allowed into China even in spite of the ban on foreign solid waste that comes into effect by year-end.
China had published the new standards after secondary producers lobbied for allowing high-grade non-ferrous scrap into China. China’s scrap metal association is certifying importers of the scrap material meeting standards prescribed in January.