A handful of recent cargoes of shredded steel scrap have successfully cleared through Chinese ports, raising hopes across the market that China may start to import more of this key material grade in the near future.
Since China
reopened its import scrap market in January, very strict standards have largely limited trades to high-grade heavy scrap (HS) from Japan and South Korea, and some parcels of Shindachi busheling from Japan.
Unconfirmed reports that Chinese customs rejected some containers of shredded scrap earlier this year have caused scrap sellers further concern when they consider whether to sell the grade to China.
And sellers in regions such as the UK told Fastmarkets earlier this year that they do not believe they can sell to China any shredded or heavy melting steel (HMS) grades. Both are considered to be lower quality grades of scrap than HS and busheling, although they would satisfy China's strict standards on impurities.
Sources...