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05 NOVEMBER 2021 AL CIRCLE

China’s power rationing may cause shortage of aluminium for the packaging industry

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

Power restrictions in China has “dramatically reduced” magnesium shipments to Europe, raising concerns that a scarcity of aluminium for packaging may result.

The comments were made on November 3, during a non-ferrous metals panel discussion at the Bureau of International Recycling's (BIR) non-ferrous metals conference.

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China’s power rationing may cause shortage of aluminium for the packaging industry

Reduced exports to Europe, according to Franco Dalpiaz, head of raw material buying at Raffmetal SPA, an Italian recycler of aluminium alloys, might lead to production halts throughout the aluminium value chain. This might have ramifications for the automobile and packaging industries.

In addition to the above statement, Mr Dalpiaz also highlighted the need to find “solutions for the zero-emission use of the internal combustion engine with renewable fuels”.

Failure to do so, he said, would result in enormous amounts of end-of-life (ELV) vehicle junk being brought forward in 10 to 15 years, with "problems finding purchasers."

Dhawal Shah, head of the BIR Non-Ferrous Metals Division and India-based Metco Marketing, called the industry's post-Covid rebound as "solid." He did admit, though, that non-ferrous metals recyclers were "on the edge of their seats" due to "unpredictability and hyper-volatility."

He went on to call the sector's present issues "chaos" and "totally unprecedented”. Metals prices are "nearing historic highs," according to Mr Shah, and supply interruption due to "high freights and container logjams" is particularly difficult.

On the issue of restricting scrap flows, Eric Tan from the Malaysia-based Non-Ferrous Metals Association warned that, in its current form, guidelines for importing scrap would “cause more harm than good to the whole non-ferrous metals industry in Malaysia”.

He expressed worry about the existing government limits of 0% for hazardous waste and 94.75 percent for metallurgical content, which would affect 80-90 percent of Malaysia's scrap imports, according to the speaker.

Mr Tan concluded by stating that the planned pre- and post-shipment inspection regime will "harm Malaysia's competitiveness" in the scrap procurement market.

Mr Shah also spoke on the Indian government's planned scrap classifications, which intends to collect cleaner, higher-quality raw materials, during a debate chaired by Natallia Zholud of TMR Group in Belarus and José-Martin Neumann of TSR Recycling in Germany.

Outlook For The Indian Aluminium Industry

These might include restrictions for "metallic and non-metallic contaminants," he added, and could be imposed within the next six to nine months.


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EDITED BY : SARNALI CHAKRABORTY 2MINS READ

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