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Thailand’s plan to tighten controls on scrap imports is raising concerns over supply chains across Asia, as stricter customs inspections slow shipments and the prospect of a broader ban threatens to disrupt the country’s recycling sector.
The Thai government is considering prohibiting imports of metal and rubber scrap to prevent electronic waste (e-waste) and hazardous materials from entering under false cargo declarations.
The proposal, which was first announced last week, remains under review but could include a six- to 12-month transition period and conditional permits for some manufacturers.
Thailand imported a combined 2.70 million tonnes of steel and aluminium scrap in 2025, with a cost, insurance and freight (CIF) value of around 63.5 billion baht, according to the country’s customs data.
Asia’s aluminium scrap faces near-term uncertainty
Market participants were heard adopting a cautious approach as they assessed the implications of tighter inspections and the possibility of an import ban.
“It’s a mixed situation at the moment,” a Hong Kong-based trade source said, adding that some buyers were using the uncertainty to negotiate lower prices, while others were holding back pending greater clarity.
A Japanese aluminium scrap trader said they were continuing to monitor developments, noting that the stepped-up inspections were likely to prolong customs clearance times.
Thailand’s role as a processing hub for aluminium scrap could leave processors, particularly those handling lower-grade material and operating on tighter margins, more exposed to the impact of the measures, the trader said.
These businesses typically import scrap for processing before exporting the material to China. Longer clearance times and higher handling costs could therefore disrupt both their raw-material procurement and downstream shipments, the trader added.
“We have seen more checks by the government,” a Thailand-based source said, adding that there were concerns that increased scrutiny could disrupt day-to-day operations.
Thai customs authorities have reportedly been conducting physical inspections of each container declared to contain scrap metal, and suspicious shipments have been uncovered in the eastern provinces of Rayong and Prachin Buri, according to local media reports.
The Southeast Asian country imported around 586,148 tonnes of aluminium scrap from January to September, up from 518,446 tonnes over the same period a year ago, according to data from the Thai Customs Department.
The US is the largest provider of material, with 240,075 tonnes delivered through September this year, while Cambodia trails in second place with around 54,139 tonnes imported over the same period.
Market sources also reported materials being diverted to India, Malaysia and Hong Kong, although the scale of any shift remained unclear.
Malaysia has had an absolute ban on imports of e-waste since February 4, 2026, as part of efforts to strengthen controls on hazardous materials and protect the environment.
The prospect of tighter supply and higher logistics costs could lend some support to domestic aluminium scrap prices in Thailand over the short term, market participants said.
For now, however, the market has remained relatively stable, supported by firm demand.
Some smelters were still operating at full capacity, according to market sources, suggesting that the immediate effect of tighter inspections has not yet translated into a broad-based disruption in consumption.
Fastmarkets’ weekly price assessment for aluminium scrap, zorba, 98/2, cif Southeast Asia, stood at $2,500-2,580 per tonne on Tuesday October 27.
Fastmarkets’ weekly price assessment for aluminium scrap, 95/5 extrusions (Tata), cif Southeast Asia, was $2,700-2,780 per tonne over the same period.
Fastmarkets’ price assessment for aluminium ingot ADC 12 spot (MJP), cfr Japan, came in at $3,040-3,120 per tonne on Wednesday October 28.
Impact on steel scrap as region tightens checks
For ferrous scrap, Thailand’s imports have been trending upwards in recent years, reflecting in part the growing demand amid expansion in the country’s automotive and construction sectors.
The country imported 2.13 million tonnes of steel scrap from January to September this year, up from 1.54 million tonnes in the same period a year earlier, according to data from the Thai Customs Department.
The US was Thailand’s largest supplier, delivering 885,451 tonnes during the first nine months of the year. Japan ranked second, with 431,428 tonnes, followed by Australia at 219,397 tonnes over the same period.
The near-term impact on US scrap exports is likely to be limited, as elevated fuel and freight costs linked to the ongoing situation in the Middle East were heard to have slowed demand from the region, sources said.
A Japan-based trader also told Fastmarkets that no significant immediate impact had been observed on the Japanese scrap market, adding that elevated scrap prices have largely kept overseas buyers on the sidelines.
Although Thailand’s demand for Japanese material has increased in recent years, the country still accounts for a small proportion of its export market compared to Vietnam or Bangladesh.
Around 26,552 tonnes of steel scrap were shipped to Thailand in September, compared with 158,070 tonnes exported to Vietnam and 136,882 tonnes to Bangladesh over the same period, according to data from Japan’s Ministry of Finance.
Nonetheless, some sources expressed skepticism that a total ban would be implemented, arguing that domestic scrap supplies might be insufficient to meet demand, especially as a large proportion of steelmaking within the country uses electric-arc furnaces (EAF).
The proposal has highlighted the challenges faced by governments across the region seeking to prevent hazardous waste imports without undermining legitimate recycling operations.
“Scrap is a very sensitive matter [and it is] hard to determine what is scrap and what is waste,” a Vietnamese industry source said.
Tighter scrutiny of imported scrap and recyclable materials reflects a broader regional trend, with the EU set to impose restrictions on scrap metal exports from next year.
Some traders in Vietnam have also reported increased scrutiny of shipments into the country.
A Vietnam-based trader said border police had stepped up inspections of cargoes coming in, citing the technical standard QCVN 31:2024/BTNMT, which requires the total mass of impurities to remain at or below 1% of the shipment’s mass.
“There have been more random checks lately,” the trader told Fastmarkets, adding that the increased scrutiny had not yet impeded scrap demand.
Fastmarkets’ weekly price assessment for steel scrap, H2, Japan-origin import, cfr Vietnam, rose by $5 per tonne to $380-390 per tonne on Friday October 23.
For higher-grade Japanese material, Fastmarkets’ weekly price assessment for steel scrap heavy scrap (HS), export, fob main port Japan, came in at ¥55,000-57,000 per tonne in the week to Wednesday October 28.
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