China’s 25 per cent tariffs on imported aluminium scraps may affect the UK market

As a retaliatory move to the US tariffs on imported aluminium and steel, China has revived its aluminium scrap policy and imposed 25 per cent tariffs on imported aluminium scraps. This has already created mayhem among the countries who export aluminium scraps to China, including the United Kingdom. The British Metals Recycling Association (BMRA) warns that this situation is affecting the aluminium scraps prices in the UK.

President Donal Trump’s decision to impose tariffs on China’s aluminium and steel imports in an attempt to protect American smelters has engendered fear of a trade war between the two countries, which in the long run may not spare the UK.

The BMRA said that the continuing lack of clarity over the US and China’s tariffs issues and the latter’s recent decision to effectively ban the import of aluminium scraps are leading to a state of uncertainty and affecting scrap metal prices in the UK.

Moreover, Chinese scrap metal imports are down by more than 38 per cent year-on-year to 440,000 tonnes, with aluminium 29 per cent, reported by Reuters.

BMRA chief executive Robert Fell said: “While the UK is not currently affected by US import tariffs, the climate of uncertainty is beginning to bite in the scrap sector, especially as China is an important export market for non-ferrous metals and electric motors.

This state of uncertainty may heighten further if shipping companies in China become more reluctant to source waste materials, due to 25 per cent tariffs on aluminium scraps, according to Robert Fell.

The chief executive even said the BMRA would “strongly lobby the Government to engage more fully with the situation and take active steps to support the waste sector more widely.”