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

Proposed import scrap regulations may soon restrict shipments of aluminum and copper into Malaysia, following suit with China’s new scrap standards, the Malaysia Non-Ferrous Metals Association (MNMA) reported. 


In the past few years, the Southeast Asian country has become one of the largest importers of aluminum scrap such as Zorba and low-grade copper scrap such as insulated copper wire (ICW) from the US and Europe. However, the new proposed standards will need all scrap to meet a 94.75pc recovery rate/yield in order to pass customs. 


Eric Tan, president at the MNMA, noted that this will affect investment in Zorba and ICW due to the added risk of rejected shipments. Further, the cost of pre- and post-shipment inspections will lead to cost inflation. He adds that for the low-carbon aluminum target ahead of the world at large, 50pc of material needs to come from scrap but such initiatives will obstruct Malaysia from achieving these goals.

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