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Copper-based scrap for Malaysia declining year on year. Future outlook.

In 2022, copper scrap exports from Japan were down 22% from the previous year (313,974t). Nearly three-quarters of the total export volume was destined for China. This is a significant increase in proportion from just under 60% the previous year. Exports to Malaysia, the second largest exporter, accounted for 12.7% of the total. However, the proportion here has been shrinking year on year, from 32.1% two years ago to 23.7% the year before. 

 

'Copper scrap import/export Report #72 Exports: 2022, 32,000 t per year, back to the export volume from three years ago'

 

Since 2018, China's ban on imports of miscellaneous articles and the new copper scrap import standards have led to a segregation of so-called miscellaneous scrap and, unmelted copper-containing scrap destined for Malaysia, with pre-furnace raw materials destined for China. This is still the case today, with China demanding higher-grade copper scrap and even stricter inspection requirements. The unit cost of exports to China is therefore high.

 

"The ship-back of miscellaneous nuggets to China has increased considerably", according to a trade source.

 

On the other hand, import restrictions for Malaysia have also been gradually tightened, but the decisive factor was the announcement in January last year that covered copper wire and E-Scrap were 100% NG, which led to the development of a route whereby covered copper wire was nuggetised in Japan and sent to China. This has led to an increase in exports of copper scrap to China.

 

(Related article) Continued reports of miscellaneous wires to Malaysia: a difficult future that is not just a matter of customs checks.

         Malaysia New metal scrap import standards to be enforced from 10 Jan. Covered wire and EW are not allowed, used appliances monitored.

 

While the Malaysian government is taking a more cautious stance on Japanese scrap exports, there was even an incident in October last year in which arrests were made for falsely declaring E-Scrap as scrap plastic bound for Malaysia. This further puts Malaysia on full vigilant surveillance of scrap exports from Japan.

 

UPDATE Arrests made over false declarations of EWASTE exports, Osaka.

 

As a result of the above, the situation between Japan and Malaysia has become more difficult, and in a sense, there has even been an honest reaction from Chinese export sources, who say that exports to Malaysia have become "less interesting and less profitable", and this is reflected in the earlier result of reduced exports. The volume of exports to Malaysia is expected to fall further.

 

'The Malaysian dismantling contractors are now turning to dismantling in Japan. We also hear that Chinese dealers in Japan will increasingly expand their presence in the country". In other words, it is a rational choice that it is better to finish the raw furnace raw materials in Japan than to take them to Malaysia. This is correct, but there are concerns that Japanese dealers will be further squeezed by further Chinese invasion.

 

And on the export customs clearance front, the Japan Environmental Sanitation Centre, under the jurisdiction of the Ministry of Economy, Trade and Industry and the Ministry of the Environment, has informed the relevant companies that it will not accept prior applications for scrap destined for Malaysia. How will this affect the situation?

 

The Japanese Customs may take this as a sign that they have seen the situation and strictly control all exports of scrap to Malaysia. In any case, it is certain that it will be very difficult to export to Malaysia. 

 

 

Japanese site is here

 

 

(IRUNIVERSE YT, translated by MK)

 

 

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