The 2026 non-ferrous scrap landscape in ASEAN
With China's 2018 "National Sword" still restricting mixed metal imports, Malaysian and Thai smelters have absorbed the arbitrage. Copper (HS 7404) and aluminum (HS 7602) scrap flow south to Port Klang and Laem Chabang, get sorted to ISRI grade, then re-export to Japanese, Korean, and Indian refiners.
Grade & pricing quick reference
| Metal | ISRI | Spec | Typical discount to LME |
|---|---|---|---|
| Bare bright copper | Barley | #1 bare wire ≥99% | LME − 3–5% |
| #2 copper | Birch/Cliff | Insulated / tarnished | LME − 15–22% |
| Aluminum UBC | Talc | Used beverage cans | LME − 25–30% |
| Aluminum extrusion | Tale/Tabloid | Clean 6xxx | LME − 12–18% |
| Yellow brass | Honey | Machine turnings clean | LME (Cu+Zn basket) − 20% |
Export controls to know
- Thailand: DIW permit for hazardous categories (insulated copper wire >0.5% PVC), radiation cert for India-bound cargo.
- Malaysia: SIRIM inspection for all non-ferrous scrap containers since 2023.
- Philippines: DENR-EMB clearance for hazardous mixed loads; clean segregated grades pass with commercial docs only.
Landed-cost example: 20 MT Barley copper, Port Klang → Busan
- LME cash (illustrative): USD 9,200/MT × 96% = USD 8,832/MT FOB
- Ocean + insurance: USD 180/MT
- SIRIM + PSI: USD 8/MT
- CIF Busan ≈ USD 9,020/MT
How TUSKO supports non-ferrous buyers
We pre-qualify yards against ISRI grading, witness sampling, and lock LME formula pricing in the contract. See our supplier verification guide and Thailand OEM exports guide for related sourcing playbooks.
Frequently Asked Questions
How is copper scrap priced day-to-day?
Contracts reference LME cash settlement on the B/L date, minus a fixed % discount by grade. TUSKO locks the formula (e.g., "LME − 4%") so daily volatility is neutral.
Can I mix grades in one container?
Smelters penalize mixed loads heavily. Segregate by ISRI code; each grade in its own labeled bulk bag or bundle.
What's the payment norm?
30% TT deposit, 70% against copy of B/L + PSI report. L/C at sight for buyers new to the yard.
Are yield tests required?
For #2 copper and aluminum UBC, yes — sample melt + assay at SGS Klang or Laem Chabang, results 5–7 days.