Plants turn to refined copper on higher prices of copper scrap

SHANGHAI, Mar 27 (SMM) – As tighter supplies and a higher value added tax (VAT) drove up prices of copper scrap, plants turned to refined copper, SMM learned. 

Data from China Customs showed that copper scrap imports in the first two months of this year slumped 40% from the same period in 2017, while VAT rose to 10.5-11%. Prices of refined copper stood far below prices of copper scrap in China, with a difference of about 505 yuan/mt on Monday March 26.

Plants that made copper, strip and foil used more refined copper. This bolstered consumption and orders for refined copper.

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