Stricter Chinese scrap policy enforcement could drive ADC12 prices higher, market says
China’s latest amendment to its solid waste law took effect on Tuesday September 1 and its stricter enforcement of solid waste import rules could push up downstream aluminium alloy prices, market participants told Fastmarkets.
The new law, aiming to have zero waste imports, not only set legal requirements for solid waste importers but also claims carriers will hold joint liability for smuggling solid waste.
Importers of illegal solid waste could face fines of up to 5 million yuan ($730,000), a fivefold increase from the 1 million yuan maximum fine in previous versions of the law.
China had been the world’s largest solid waste importer for years after it started importing solid waste as a source of raw materials in the 1980s. But problems emerged when some companies made profit by bringing foreign waste into the country illegally or failed to dispose of solid waste properly after bringing it into the country together with other recycled raw material.