China to ban import of scrap plastics, recycle sector might be affected

According to media reports, China has sent official notification to the World Trade Organisation (WTO) on 18 July that the country will suspend the import of foreign garbage by end of 2017. This is part of the Chinese government’s effort to protect public health and the environment.

The ban would include most waste plastics including PVC, polyethylene and polystyrene, as well as mixed papers and slag with HS code stated in the following table:

China imported about 7.3 millions tons of waste plastics in 2016, which is nearly 60 per cent of the world’s total imports, with Hong Kong, Japan and USA topped the exporter list.

In related reports, recycle industry in China has been under heavy environmental crackdown since early July 2017, from which 590 recyclers were found to have violated environmental regulations. As a result, 383 plants have temporarily suspended production and 53 shut permanently.

Within the petrochemical sector, Chinese traders are expecting that such move by the government could stimulate demand for prime grade cargoes. Players are monitoring further development very closely.