New Regulations Could Disrupt Supply Chains Worldwide

As we mentioned in an earlier post, proposes restrictions on scrap metal imports in Asia (specifically Malaysia) could put the brakes on U.S. exports of recyclable metals (ferrous and nonferrous) to that country.

According to the Bureau of International Recycling, the Malaysian government recently submitted documentation along with a presentation to an inspection service requesting tighter restrictions on the metals imported into the country. If the restrictions are actually put in place it may have devastating effects on the global metal export industry.

Loading Los Angeles scrap metal to container ships
Loading Los Angeles scrap metal to container ships

According to some experts, a Malaysian clamp down would hurt local (Malaysian) copper melting entrepreneurs. Without a robust Malaysian metal import, U.S. scrap metal exporters may see a reduction in the amounts of metal they are able to sell to secondary metals markets.

Watching containers carrying scrap metal for recycling overseas

The proposed restrictions have not yet taken effect and international groups plan to participate in meetings on the subject.  The Malaysia Non-Ferrous Metals Association is one group that has taken a stand against enacting such restrictions. The association is just one voice claiming that the government’s proposed changes would be economically dangerous.

A tightening on imported metals would also mean less shipping from local ports such as Los Angeles and Long Beach. With a reduced scrap market oversees the effect would be felt on dockworkers here and around the nation.

Los Angeles Scrap Metal Recycling Market Could Feel Pinch

As of now, without such restrictions in place the Los Angeles scrap metal recycling industry continues to function at a rapid pace and scrap metals such as aluminum, copper, brass and stainless steel continue to fetch significant prices. Scrappers wishing to sell their scrap metal for cash in the Los Angeles area should continue to patronize recycling centers such as TM Scrap Metals to get the highest return on their excess metals.