In a breaking news alert to its members, the Institute of Scrap Recycling Industries, Inc. (ISRI) released updates from China regarding tariff cuts, solid waste import quotas and the impact that the coronavirus has had on supply chains.
China announced on February 6 that it will cut in half the additional tariffs on $75 billion of American products that were imposed late last year, a sign that Beijing is implementing the phase one deal with United States.
The original retaliatory tariffs imposed in 2018 will remain. Thus, for aluminum scrap, the final tariff is down from 55 percent to 52.5 percent, and for recovered paper, cullet and copper scrap, the final tariff is down from 30 percent to 27.5 percent for the rest. This reflects tariffs on material from the United States because of the trade war, ISRI points out. This planned reduction is in response to the U.S. implementing reductions in tariffs on Chinese products taking effect on February 14.
The Chinese government also announced tariff cuts on more than 850 product imports from global sources. Ferrous scrap import tariffs are now 2 percent, and copper and aluminum scrap tariffs are now 1.5 percent on material from all countries excluding the United States.
Furthermore, according to ISRI, reports indicate that ship calls at or through major Chinese ports have fallen 20 percent since January 20, as measures to control the coronavirus outbreak cut into international supply chains.
“Full impact of the Chinese coronavirus outbreak on container volumes won't be fully quantified until ports announce their first quarter numbers,” according to ISRI. “Reduction in volume is to be expected and will ripple through supply chains in the U.S. and Europe, with rail and truck volumes likely to follow.”
“Big container lines continue to operate at China's main coastal seaports. Unfortunately, the decrease in bookings for container ships, tankers and dry bulk vessels the slowdown could last until March. This could have a very real impact on supply chain deliveries for recyclers exporting material to China or importing material, machinery and parts from China,” added ISRI.
Lastly, the Chinese government announced the third batch of import quotas with a total volume of 8,730 tons, including 4,620 tons of copper, 1,440 tons of aluminum and 2,670 tons of ferrous.