China’s aluminium scrap import in May recorded 15.81% rise month-on-month

According to Shanghai Metals Market, China’s aluminium scrap import increased 15.81 per cent month-on-month and 57.8 per cent year-on-year in May to come in at 177,200 tonnes. Importers’ rush to move the seaborne scrap metal into domestic markets before import restrictions on July 1 resulted in this month-on-month rise in China’s aluminium scrap import.

In April, the country had imported 153,000 tonnes of aluminium scrap, 21.6 per cent higher from 126,000 tonnes in March. This indicates that China’s aluminium scrap import increased month-on-month from March to May 2019.

Imports in April had increased 37.4 per cent to 102,000 tonnes through general trade, the highest in 13 months, but decreased through processing trade by 7.2 per cent year-on-year to 51,000 tonnes.

During January-February, China’s total amount of aluminium scrap import was at 206,000 tonnes, compared with 309,500 tonnes in the same period last year. That brought China’s aluminium scrap import to 662,200 tonnes between January and May 2019.  

On June 20, China issued the 9^th batch of quotas for metal scrap imports for the third quarter, allowing 54,256 mt of aluminium scrap to enter China. This covered 16 companies in Zhejiang province.

SMM expects another batch of approval to be released at the beginning of July. Imports of aluminium scrap in June are likely to remain flat year on year as arrivals may considerably fall at the end of the month. Import restriction on Category Six aluminium scrap under HS code 760200090 will begin from July 1.