The scrap metal industry is overwhelmed by strict regulations

A monthly report by the Bureau of International Recycling (BIR) notes that stricter regulations regarding the export of scrap metal in tighter market conditions around the world are negatively affecting the scrap metal industry during the last months of this year.

The prevailing extremely difficult market conditions, coupled with regulatory barriers, have resulted in the closure of several small and medium-sized scrap metal operations in Russia. The country has included all types of scrap metal in the list of raw materials vital for the domestic industry, which gives the government the right to implement a direct and immediate ban on the export of scrap metal to any time. Meanwhile, the Russian authorities are calling for restrictions on the export of scrap metal from CIS countries such as Kazakhstan and Belarus.

The latest data released by the Chinese customs authorities indicate that imports of copper scrap rose significantly during March this year. Scrap copper imports to China jumped almost 76% in March this year compared to the previous month. The unexpected growth in imports was mainly due to strong incentives from the Chinese authorities.

Demand for imports of scrap metal weakened in Southeast Asia, despite a shortage of scrap in the domestic market. There has been an unprecedented increase in UBC scrap exports to South Korea, exacerbating the domestic availability of this material. Meanwhile, purchases of other brands of aluminum scrap in Japan remained afloat. Exports of scrap metal from the Middle East region fell significantly due to lower demand from India's key scrap buyer.

The Australian scrap market remains challenging. The United States reported a sharp increase in the collection of ferrous and non-ferrous scrap. The country reported a spike in prices. Germany has also witnessed a short increase in the available volumes of non-ferrous scrap. The UK scrap market recorded a slight improvement in April this year. Strong market demand was offset by low volumes of scrap metal.

Mexican customs authorities have stepped up checks on export shipments of scrap metal, resulting in delays in shipments. Export activities have been hampered by a new rule, which provides mandates for exporters of scrap in the country, recorded in the export register. Customs clearance procedures are an attempt to prevent the export of semi-finished or finished goods instead of scrap.