Cold front? Chinese government attempts to control waste flows could cool the importing of copper scrap

Recycling Today, Jan, 2005 by Dan Sandoval

However, Chen contradicts Gilbert's position that most processors are not overly concerned with shippers having a license number. "We are seeing a lot of processors willing to sell only to a company with a registered number."

Tung Tai's Chen adds that presently there is a significant congestion problem at Chinese ports (as well as at a number of U.S. ports). Part of this backlog is because customs agents in China are working through the new standards implemented by AQSIQ.

Gilbert says that the lack of a thorough explanation of what the whole program entails has left many steamship lines expressing apprehension on whether or not to accept certain loads out of fear of being stuck with a container that has been rejected.

While exporting companies have a better understanding of the policy, Gilbert says, most processors aren't overly concerned with whether a broker has the license number to ship copper scrap to China.

But steamship lines are extremely concerned with the changing dynamic of AQSIQ. Because steamship lines often carry significant containers of recyclable material, any problem with the shipment once it reaches a Chinese port could result in significant costs to the shipping lines, including charges for storing the containers and redirecting them to another location if the shipment is rejected. At best, rejections could just slow down the overall process, Gilbert says.

Receiving a license from the AQSIQ is one step, but another important step is having material inspected to prove that the material is what has been purchased.

The group that has been slated to conduct the inspections is the China National Import & Export Commodities Inspection Corporation North America (CCIC). This group has locations throughout the world.

Several recyclers say that one of the biggest changes resulting from the implementation of the new AQSIQ policy is the lag time needed to bring in CCIC inspectors to check containers, which may add several additional days to the shipping process.

While using CCIC to inspect containers that are destined for China may delay the shipping process, scrap recyclers in Canada are faced with the dilemma of not having any CCIC offices in their country.

Because scrap recyclers may need to have their shipments inspected before they embark, the lack of a Canadian inspection office poses some significant problems, says Len Shaw with the Canadian Association of Recycling Industries, a Canadian-based association of scrap recycling companies.

Shaw says that while CARI and the Canadian government have been having discussions with Chinese officials about alleviating the situation, offices have yet to be located in Canada.

Shaw points out that the policy as it stands now is a restriction of trade between Canada and China. But he does say it is likely that CCIC will eventually open an office in Canada.

DEMAND REMAINS HOT. Despite the increased difficulty of shipping recyclables to China, demand continues to be very strong.

In fact, Chen, who recently came back from China, says that prices for scrap copper, which have dipped slightly, are expected to remain strong throughout the long term.