The import ban on the hottest scrap aluminum has l

2022-08-22
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On July 20, China officially proposed to the WTO that it would ban the import of 24 kinds of solid wastes, including household waste plastics, vanadium slag, unclassified waste paper and waste textiles, before the end of 2017. This time, it did not involve waste aluminum and copper. On the 25th, it was reported that the recycling branch of China Nonferrous Metals Industry Association had received a notice that by the end of next year, the import of waste hardware, including waste wires, waste motors, and bulk waste hardware, would also be banned, that is, the so-called waste seven categories, which actually involved the import of waste aluminum, waste aluminum and waste copper. And how much impact does this have on the import of scrap aluminum

according to SMM, imported scrap aluminum is mainly used in the production of recycled aluminum alloy, and the remaining part is diverted to aluminum rod and aluminum strip enterprises. Recycled aluminum enterprises mostly use automobile chips in scrap aluminum (tariff No.) in the sixth category of waste. This is true of most recycled aluminum enterprises that use imported scrap aluminum in Jiangsu, Guangdong and Zhejiang, the main consumption places of basically imported scrap aluminum. Only some small and medium-sized recycled aluminum enterprises in Ningbo and Taizhou, Zhejiang Province, use the waste aluminum and copper in the seventh category of waste disassembled by Taizhou disassembly plant as raw materials to produce recycled aluminum alloy ingots, and the production capacity of this part is less than 10% of the whole recycled aluminum market

according to Ningbo renewable aluminum enterprises, although they use most of the seventh kind of waste to disassemble waste aluminum, it is not irreplaceable. The main reason is that at present, waste copper in the seventh kind of waste is used as the main addition of copper in aluminum alloy ingots. After prohibition, it will increase the cost of purchasing copper. The sixth kind of waste aluminum can be used as a substitute for the waste aluminum. However, domestic large-scale recycled aluminum enterprises, such as Yiqiu, Boyuan metal, Nandu renewable and Dazheng aluminum, all said that the imported scrap aluminum used was basically the sixth kind of scrap aluminum, and the ban on the import of the seventh kind of scrap aluminum had little impact on the use of imported scrap aluminum

in addition, according to the customs data, the amount of imported scrap aluminum decreased year by year, from 2.854 million tons in 2010 to 1.917 million tons in 2016. According to SMM statistics, the total domestic supply of scrap aluminum in 2016 was 7.45 million tons, accounting for less than 30% of exports. Since then, due to the increase of domestic supply of scrap aluminum in different pull ranges and the improvement of recycling system, the amount of scrap aluminum entering Medtronic will continue to decrease

therefore, the ban on the import of category VII waste aluminum has a limited impact on the whole waste aluminum import market. The more direct impact is on the disassembly plants of imported waste and waste copper, and the more it is only the increase of cost for renewable aluminum enterprises. At present, there is still no obvious impact on the price of waste aluminum, and it may be replaced by the sixth type of waste aluminum or domestic waste aluminum, which will raise the price of this part of waste aluminum to a certain extent. For aluminum price, there is no direct correlation

in addition, according to the customs data, in 2016, the import volume of China's scrap aluminum processing trade and incoming processing trade totaled 616000 tons, accounting for nearly one third. Because of tax avoidance, recycled aluminum exports mostly choose to import and processing trade with supplied materials, which is not supported by the state at present. It is only a matter of time to cancel this item. All recycled aluminum enterprises have this concern and have made corresponding preparations. SMM believes that this is the main factor affecting the import of scrap aluminum, and various recycled aluminum enterprises also pay high attention to it

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