CRU: Reclassifying Chinese Scrap Imports is Unlikely to Solve Market Tightness

By CRU Principal Analyst Chris Asgill, from CRU’s Global Steel Trade Service

China has banned steel scrap imports for the past year as part of its solid waste management policies that affect imports on a wide range of metal scrap and plastic waste. Recently, policymakers announced that a review on these policies will be sped up with the aim to reclassify scrap metal as a resource rather than waste. The industry is keen on a change as the Chinese domestic steel scrap market is tight and prices are high. However, there are two reasons we do not believe policy alterations will change this situation.