SHANGHAI, Jun. 19 (SMM) – China has re-launched a 30% rebate for the VAT imposed on copper scrap recyclers starting from July 1, but the impact on refined copper may be limited, analyst interviewed by SMM says.
“The VAT rebate may encourage some large scrap copper processors to increase consumption of scrap, but the low rebate rate is not attractive enough,” analyst of Guotai Junan Futures told SMM.
“Besides, the current price spread between scrap and refined copper means downstream producers are unlikely to turn to scrap copper, so we expect copper prices to be little affected by the rebate policy,” the analyst added.
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