Port authorities clearing scrap containers

Port authorities in China are close to clearing the backlog of containers that has built up mainly in the south of the country following a major crackdown on importers trying to avoid complying with new duties for scrap.

Two weeks ago there were 6,000 containers waiting to be unloaded. Now there are under 1,000 with assorted scrap.

A source at one company said, ‘The ports have really started to get containers moving and there about 1,000 left. Chinese buyers are back in the market and buying vigorously. They’re quoting for all types of material like birch, cliff, honey and mixed borings.’ There is no indication as to what scrap ‘cliff’ might be. Possibly something being shipped from Dover.

China has been the the largest buyer of scrap over the last few years. One scrap trader said, ‘There still isn’t an abundance of scrap around in the US because of the slowdown in manufacturing and with the Chinese now returning to the market we’re going to see prices kick right back up.’

Two months ago customs officers launched a major offensive against importers trying to avoid complying with new duties. Scrap dealers left the market waiting for the heat to cool down.

There had been a widespread practice among many Chinese importers of mixing low-purity scrap with higher purity material to avoid paying higher taxes. Now that is sorted out — they are paying the taxes — the containers are moving and the contents are worth more.