National Sword slashes interest in plastic scrap

Worldwide: In early April, the China Scrap Plastics Association reported that some 5000 containers loaded with plastic scrap could well be auctioned off from their current position in Hong Kong. Having arrived from all over the world, the boxes had not been allowed into China following implementation of the National Sword regime.

Another major challenge for European exporters has been the tripling in freight costs for shipments from main European ports to Chinese ports over the last three months - from US$ 750-800 per container in January to US$ 2300-2400 for April.

There is no room to negotiate freight rates and space is limited even with charges at such high levels. The jump in freight costs restricted the volumes of plastic scrap shipped from Europe to China as many exporters decided not to book containers at such high levels.

Over the same three months, shipping costs to India have increased by US$ 500-700 per container; the shipping lines are talking of a general rate increase of US$ 500-600 for May - a move which would certainly affect volumes heading from Europe to India. Freights for Europe-China routes should remain stable in May.

In the current scenario, prices should remain soft in May.

Recycling International's full plastics market update is included in the upcoming issue (#4).

 

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