Nonferrous Department

A Wall Around China

Unhappy with U.S. restrictions on steel imports, China may have shot a trade volley back at the nonferrous scrap market, placing a duty on imports of many low grades of nonferrous scrap.

A substantial tariff announced in late May on what China calls "Class 7" copper scrap has blocked a number of containers of copper scrap from entering the country and placed the status of those in transit in question.

According to one U.S.-based nonferrous broker, the Chinese government has targeted the Class 7 scrap, which includes most lower grades of copper scrap such as unprocessed wire and die cast alloyed parts. The tariff is seen as a way to influence U.S. policy makers.

Other published reports indicate that the blocking of nonferrous scrap shipments is related to the Chinese government’s ongoing efforts to restrict the flow of electronic scrap into the country because of environmental and safety concerns.

Speculation has even included theories that the tariff has been enacted to force the smelting industry in China to use higher grades of scrap as a pollution prevention measure.

As of late June, customs officials were taking the tariff seriously.