Dive Brief:
- China's Ministry of Ecology and Environment (MEE) has announced plans to formally ban the import of 32 scrap categories, as reported by Reuters.
- This ban will take effect for 16 categories by the end of 2018. Those categories include various types of motors, dismantled ships, steel slag and plastics.
- The policy will take effect for the remaining 16 categories by the end of 2019. That includes various types of wood waste, stainless steel, titanium, tungsten, magnesium and zirconium.
Dive Insight:
This move isn't a total surprise, given China's stated goal of reducing scrap imports and improving domestic resource recovery capabilities. More specific details and analysis from scrap industry resources can be expected in the coming days. So far, the MEE hasn't posted a full list on its English website. Waste Dive has uploaded an auto-translated version, but cautions that it is imprecise.
In broad terms, this is yet another sign China is getting serious about environmental quality and won't be backing down on trade. During a recent press briefing, the MEE reportedly touted plans "to conscientiously enforce and strictly forbid foreign garbage from crossing the border" going forward. The government has already made multiple announcement about smuggling crackdowns and the seizure of illegal waste so far this year.
The abrupt nature of this policy has upended the economics around recycling from the European Union to Australia to the U.S. Solutions have varied, with some finding new markets in Southeast Asia or domestically, and others choosing to dispose of material while they search for alternatives. Many in the industry continue to hope that China may reverse course on its import ban, or at least its 0.5% contamination standard on material that is still accepted, at some point in the coming months or years.
Based on this new announcement — and the strained nature of trade relations between the U.S. and China over tariffs on materials such as plastics, aluminum, and now rubber — that is appearing less likely in the near term.