As with most types of metal, robust demand for copper scrap from Chinese buyers has propelled pricing for the material to record levels. This surge in demand has soaked up a tremendous amount of copper scrap throughout the world, including the United States. The record prices have resulted in consternation on the part of many domestic consumers, who find it difficult to compete with China's open-checkbook approach.

Reflecting this anxiousness, the U.S. Commerce Department received a request by a host of copper consumers to restrict the export of scrap copper earlier this year. (The request was turned down.) However, some observers wonder whether China's shifting customs policies could have an impact on the import of copper scrap.

Most industry observers agree that during the long term, copper scrap shipments to China will grow, and quite significantly, too. However, for some scrap exporters, several issues are potential causes for concern in the short term.

LEFT IN THE COLD. Starting Jan. 1, 2005, anyone who is looking to ship scrap material directly to China will need a designated shipping number. Without such a number, container lines have been instructed not to put containers on their vessels.

China's Administration of Quality Supervision Inspection and Quarantine agency (AQSIQ) is overseeing the new customs and inspection numbering system. According to the agency's mandate, companies that do not have a license number issued by the government will be prohibited from shipping recyclable materials to China.

While the mandate appears relatively clear-cut, the actual path that AQSIQ has taken in exercising its mandate has been far from straight. Originally announced more than one year ago, the deadline has been pushed back continually as companies shipping material to China have faced a host of roadblocks and uncertainty about forms, deadlines, requirements and specifications.

Even now, with reportedly slightly more than 2,000 companies worldwide having received their AQSIQ numbers, questions remain about the actual effect of the policy.

Scott Horne, legal counsel with the Institute of Scrap Recycling Industries Inc. (ISRI), Washington, says ISRI has been working with AQSIQ to provide accurate information to recyclers throughout the past year. "We have met with them to clarify their notices," he says.

Horne adds that AQSIQ is not as concerned with the commercial aspects associated with importing, but "with the waste material."