Thailand's proposed scrap import ban may redirect shipments to India and other Asian markets

Thailand’s proposed scrap import ban could redirect shipments to India and other Asian markets, with Indian traders anticipating increased offers of mixed-metal scrap and potential downward pressure on selected scrap prices, including Zorba.

An Indian trader said market sources had indicated that shipping companies were becoming reluctant to handle scrap shipments destined for Thailand, raising the possibility that some cargoes already in transit could be diverted.

“I heard from market sources that shipping companies were becoming reluctant to handle scrap shipments destined for Thailand. As a result, some cargoes already in transit could be diverted to India,” the trader said.

The trader also warned that Thailand’s imports of low-grade scrap, including electronic scrap, raised concerns about potentially unsuitable material finding its way into India.

Another trader reported receiving offers from a supplier that regularly supplied mixed metal scrap to Thailand.

“Last night I got offers from a supplier who used to supply aluminium to Thailand regularly. Mostly mix metal and aluminium alloys,” the trader said.

An Indian smelter expected additional availability to potentially weigh on Zorba prices if supply outpaced demand. These are market expectations; actual cargo diversions and their price impact remain unconfirmed.

Thailand’s scrap imports rise 32.2 per cent in January–September

Thai Customs data show that imports of ferrous, aluminium and copper scrap totalled 2.77 million tonnes in January–September 2026, up 32.2 per cent year on year. Their combined CIF value increased to THB 71.19 billion (USD 2.19 billion), from THB 54.75 billion (USD 1.65 billion) a year earlier.

Ferrous scrap imports climb 38.4 per cent

Thailand imported 2.13 million tonnes of ferrous scrap in January–September 2026, up from 1.54 million tonnes a year earlier. The CIF value rose 14.8 per cent to THB 19.77 billion (USD 608.3 million).

September imports increased 85.7 per cent year on year to 199,071 tonnes, while the CIF value climbed 78.7 per cent to THB 1.65 billion (USD 49.5 million).

Aluminium scrap imports increase 13.1 per cent

Aluminium scrap imports rose to 586,148 tonnes in January–September 2026 from 518,446 tonnes a year earlier. The CIF value increased 30.6 per cent to THB 41.78 billion (USD 1.29 billion).

September imports edged up 3.3 per cent year on year to 38,064 tonnes, while the CIF value rose 41.6 per cent to THB 3.35 billion (USD 100.7 million).

Copper scrap records fastest growth

Copper scrap imports increased 41.7 per cent year on year to 49,662 tonnes in January–September 2026. The CIF value rose 73.8 per cent to THB 9.64 billion (USD 296.8 million).

September imports increased 24.9 per cent to 7,255 tonnes, while the CIF value climbed 51.4 per cent to THB 1.57 billion (USD 47.2 million).

Thailand’s proposed ban remains under review

Thailand has proposed a blanket ban on imports of ferrous, aluminium and copper scrap, alongside rubber scrap, to curb the entry of electronic waste and hazardous materials disguised as recyclable goods. As of October 28, 2026, the proposal had not been formally implemented and remained subject to inter-agency review and further regulatory action.

The Department of Foreign Trade has referred the proposal to the Pollution Control Department for consideration. A six- to 12-month transition period and conditional import permits for eligible manufacturers have been discussed as possible elements of the regulatory framework. Meanwhile, Thai authorities have tightened inspections of scrap shipments and enforcement against suspected illegal waste imports.

For Indian traders, the immediate concern is whether tighter controls and the prospect of a future ban will prompt suppliers to redirect Thailand-bound cargoes to alternative Asian markets. Market participants expect this could increase the availability of mixed-metal scrap and aluminium alloys, potentially weighing on selected grades, including Zorba. However, actual diversions and their impact on prices remain unconfirmed.

Market participants will be watching supplier offers, vessel movements, freight costs and import clearance requirements for signs of changes in regional trade flows.

Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.