China’s imports of aluminium scrap are expected to fall 16% year-on-year to 1.31 million tonnes in 2019, as the country expects lower aluminium scrap import quotas in the fourth quarter. Aluminium scrap import quotas are likely to drop to 120,000 tonnes in Q4 compared with 361,000 tonnes in Q3, Shanghai Metals Market estimated.
On July 10, China issued the 10th batch of quotas for restricted metal scrap imports for 2019. The batch allows 306,930 tonnes of aluminium scrap imports for companies mostly from Guangdong, Jiangsu and Liaoning. The 9th and 10th batches of import quotas allow a total of 361,186 tonnes of aluminium scrap to enter China, compared to imports of 349,510 tonnes registered in the third quarter of 2018.
Major secondary aluminium producers with overseas scrap as feedstock, such as Gezhouba Zhanci, Lanxi Boyuan, Zhejiang Judong, Ye Chiu Group, Zhaoqing Dazheng, and Zhaoqing Nandu, obtained considerable amounts of quotas.
Domestic imports of aluminium scrap increased to 330,000 tonnes in April-May, as importers rushed to move foreign scrap metal into domestic markets before restrictions on July 1. Imports came in at 495,000 tonnes in the second quarter, SMM estimated.
Restrictions on Category Six aluminium scrap imports since July 1 have yet to have a significant impact on the market, with stables prices of overseas aluminium scrap.
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