China’s Scrap Import Restrictions and Impact on Global Metals Supply Chains

On July 1, China imposed additional environmental restrictions on scrap metal imports that threaten to create significant supply chain disruptions for refiners and manufacturers using raw material inputs.

The latest import restrictions come as part of Beijing’s efforts to cut solid waste imports to zero by 2020. Since Beijing adopted its environmental campaign against solid waste in 2017, China has reportedly cut scrap imports by over 40 percent in 2018. Scrap metal traders face many challenges including regulatory ambiguity, retaliatory tariffs, heavy port congestion, longer customs processing times and compliance with strict contamination standards. This Resilience360 report provides insights into what companies can do to mitigate operational and shipment delays as China looks to intensify its environmental crackdown on scrap imports.