Some large Chinese metal scrap buyers that have been granted import quotas have been reselling their permits to smaller companies since new import restriction came into place, Fastmarkets learned.
China implemented a quota system in July this year to restrict the inflow of metal scrap, including high-quality category 6 copper scrap, in a bid to reduce the pollution arising from the scrap processing business. "Some smaller firms that have not been awarded with quotas could not source scrap domestically, so they are willing to pay a premium to the big importers to buy quotas," a scrap trader said. A scrap buyer source told Fastmarkets copper scrap import quota permits can be bought for 1,000 yuan per tonne ($141). Three rounds of quotas have...