China expands aluminium scrap import quotas by 5840 tonnes in the eighth batch for 2020

Shanghai Metals Market reveals that China's Ministry of Ecology and Environment has issued the eighth batch of copper and aluminium scrap quotas for 2020 on Tuesday, June 16.

The authorities confirmed that the eighth batch of metal scrap quotas would allow additional 5,840 tonnes of high-grade aluminium scrap to enter China. This marks a significant rise of 4,360 tonnes from 1480 tonnes allowed in the seventh batch. While in the sixth batch, the ministry had granted 1,030 tonnes of additional imports to China.

Thus, with the latest expansion, the cumulative quotas for this year have reached 483,999 tonnes, according to Shanghai Metals Market.

China is expanding its aluminium scrap import quotas anticipating the usage of secondary aluminium to replace the primary metal. At China Aluminium Processing Industry Summit 2020, Racket Hu, Vice President of SMM, said the use of recycled aluminium is likely to gain back its pace. Hu noted China’s demand for aluminium scrap would recover in the next decade.

From late April, China's secondary aluminium casting plants, which increased the use of primary aluminium to a ratio of 20 per cent from earlier 2 per cent, started switching to recycled aluminium as slow domestic demand pulled the prices of secondary alloy (ADC12) lower.

For March, China customs data found the country’s aluminium scrap imports grew 29.8 per cent from the earlier month totalling 77,000 tonnes.