Brief introduction of scrap copper
According to the different stages of its production, copper scrap can be divided into three categories: the first waste copper produced in the industrial production process, the new waste copper produced in the processing process and the old waste copper produced by consumers.
Primary copper scrap generally refers to substandard anodes, cathodes and blanks, as well as anode waste. These wastes cannot be further processed or sold, but are usually returned to the previous process, the substandard copper is usually returned to the converter or anode furnace for electrorefining, and the defective billets are remelted and recast. Generally speaking, scrap copper has been recycled without "getting out of the house", and basically does not enter the scrap copper market.
New scrap copper refers to new scrap or scrap copper produced inside the factory. This kind of scrap copper is produced in the process of processing, and the main difference between it and primary scrap copper is that it may have been doped in the process of alloying or adding cover. The treatment of new copper scrap depends on its chemical composition and its combination with other materials. The simplest method is internal recycling, which is a more common practice in the casting process, which only requires remelting and re-casting. More than 90% of the new waste will be recycled by our factory or recycled upstream, and will not flow to the market.
The old copper scrap mainly comes from the five terminal fields of electric power, home appliances, construction, transportation and machinery and electronics, which refers to the copper metal obtained after recycling or dismantling the discarded copper products.
The main body that we pay attention to is the old waste. Depending on the composition, Scrap copper mainly includes: No. 1 copper wire, No. 2 copper wire, special copper, No. 1 copper, No. 2 copper, No. 1 copper meter, No. 2 copper meter, thin copper plate, waste copper foil, brass scrap, waste brass, waste brass castings, waste red brass, brass shaft sleeve, waste brass tube, waste navy brass tube, waste aluminum brass tube, copper plumbing parts, waste brass mixture, shell shell, shell with fuze, bullet shell, waste brass mixture. Zinc white copper scrap and so on.
Most of the waste copper industries in China are concentrated in the form of parks, which are uniformly managed by the local government, including Tianjin Ziya Circular economy Industrial Zone, Guangdong Qingyuan Huaqing Circular economy Park, Hunan Miluo Tongli Circular Industrial Park and so on.
The scrap copper market in China is mainly concentrated in the Yangtze River Delta, Pearl River Delta and Bohai Rim. Generally speaking, the most developed areas are also the areas with the largest production of copper products. At present, China has formed three key areas of copper scrap disassembly, processing and consumption, namely, the Yangtze River Delta, the Bohai Rim and the Pearl River Delta. The amount of copper scrap recovered in these areas accounts for about 80% of the total domestic waste copper output.
Among them, the Yangtze River Delta region is represented by Zhejiang Taizhou and Ningbo, the Pearl River Delta is represented by Guangdong, and the areas around the Bohai Sea are represented by Tianjin, Hebei and Shandong. And formed a number of scrap copper professional markets with large dismantling volume and large trading volume, such as Zhejiang Taizhou Road and Bridge, Hebei Anxin, Guangdong Qingyuan, Jiangsu Yixing and Suzhou.
The scrap copper markets in Guangdong, Zhejiang and Tianjin are mainly imported scrap copper disassembly, while the scrap copper markets in Linyi, Shandong, Baoding, Hebei and Miluo, Hunan are mainly domestic scrap copper disassembly.
The scrap copper factory will sense the tension of the market through the refined scrap price difference in order to guide its own speed of entry and delivery. The fine waste price difference becomes larger, which greatly exceeds the reasonable price difference, which will increase the purchase of scrap copper, thus reducing the fine waste price spread. after the price difference falls, the demand for refined copper will increase again, making the fine waste price difference stable.
"[attention] the most stringent repeal law came the outbreak of environmental protection concept stocks! Metal enterprises should be aware of these effects
The supply areas of copper scrap are mainly concentrated in the developed countries in Europe and the United States, which have earlier industrialization. From 2013 to 2017, China was the world's largest importer of scrap copper, with imports totaling US $48.371 billion, followed by Germany with US $14.004 billion, according to the United Nations Center for data Statistics. South Korea, Belgium and Japan imported US $8.295 billion, US $6.405 billion and US $4.873 billion, respectively.
Malaysia is the largest waste importer in Southeast Asia, and its legal system for waste management is relatively perfect. According to the law, in addition to certain qualifications, importers and exporters are generally required to submit application forms, permits, waste sources, importers and exporters' contracts, contracts with owners of waste treatment / recycling facilities, accreditation agency data, bank guarantees, etc.
Since the implementation of the Green Barrier campaign by Chinese Customs in 2013, China's copper scrap import has shown a downward trend year by year. Copper prices rose sharply at the end of 2016, as the cost of scrap copper was lower than that of refined copper, downstream consumption continued to improve, scrap copper demand increased, and scrap copper supply rebounded in 2017.
According to data released by the General Administration of Customs, the import of copper scrap in July was 75113 tons, an increase of 9.26% from the previous month and a decrease of 41.1% from the same period last year. From January to July this year, copper scrap imports totaled 505731 tons, down 47% from the same period last year. With the successive issuance of new approvals, although quarter-on-quarter continued to decrease, it can still be replenished by many small and medium-sized processing enterprises in the short term; the impact of superimposed overseas epidemics on the scrap copper supply chain gradually eased, and scrap copper imports increased in July compared with the same period last year, but the import volume is still on the low side, far below the level of the same period last year.
China's supply of scrap copper is relatively dependent on imports, but in recent years, with the stricter import policy of scrap copper, the domestic scrap copper market has gradually improved, and the proportion of imported scrap copper has dropped from 80% to about 50%. In particular, this year's epidemic and policy changes and other factors led to a substantial decline in scrap copper imports, the domestic scrap copper market is more self-sufficient.
As of August 28th, CIF of scrap copper was quoted as a deduction of 30 cents per pound for the December contract price of fine copper, and CIF quoted a deduction of 40 cents per pound for the December contract price of fine copper, a significant increase of 7 cents per pound compared with the supply of goods arriving in Hong Kong before September. At present, scrap copper can only be imported through the use of approval documents, but most domestic enterprises lack import approval documents, and small and medium-sized enterprises have also consumed a considerable part of the approval quota, so market participants are even more limited. superimposed foreign shipping companies fully comply with the provisions of the new solid waste law in September, and do not recognize the way of using approval documents to import solid waste. Many factors lead to a downturn in the import scrap copper market in September and cheap quotations. When there is no news of the implementation date of the recycled copper standard, the new solid waste law has a great inhibition on the enthusiasm of import.
Carding of scrap Copper Policy in recent 3 years
In July 2017, the "implementation Plan for banning the entry of Foreign garbage to promote the Reform of solid waste Import Management system": it is necessary to gradually and orderly reduce the type and number of solid waste imports, and gradually stop the import of solid waste by the end of 2019.
April 2018, notice on the adjustment of the Import waste Management Catalog: waste motors mainly recycling copper, including waste motors, wires, cables, hardware and electrical appliances ("waste seven categories"), will be transferred from the list of solid wastes that can be used as raw materials to the catalogue of prohibited Import of solid waste from the catalogue of solid wastes that can be used as raw materials, effective as of December 31, 2018.
In August 2018, the Department of Commerce imposed a 25% tariff on US imports of scrap copper (mainly as a result of the trade war);
In December 2018, the announcement on the adjustment of the catalogue of imported wastes: the transfer of copper scrap ("waste six categories") from the catalogue of solid wastes that can be used as raw materials in unrestricted imports to the catalogue of solid wastes that can be used as raw materials in restricted imports, it will be implemented as of July 1, 2019.
In January, the State Administration of Market Supervision and Administration and the State Standardization Administration announced the standard rules of GB/T 38470-2019 (recycled brass raw materials) and GB/T 38471-2019 (recycled copper raw materials). "View details
The standard rules of "recycled Copper Raw Materials" and "recycled Brass Raw Materials" issued by the National Standards Committee specify not only the copper content of red copper and brass, but also the inclusion content and water content.
Among the six types of imported scrap copper, copper and brass account for about 60% and 40%, respectively, and metals account for 73% and 27%, respectively. Other low-quality scrap copper, such as circuit boards, is negligible. Among them, the average grade of imported copper and brass is 96% and 55% respectively, and the average grade can reach 79%. It can be seen that at present, the structure of imported scrap copper has been optimized, and the low-grade scrap copper is less. The calculation results show that the scrap copper, which accounts for 91.62% of the metal, can meet the new standard of recycled (brass) raw materials, of which 96.72% of red copper and 78.51% of brass can meet the standard.
The detailed rules for the import of recycled copper are up in the air, there is no official statement on the detailed documents for actual import, and waste enterprises have not yet received the relevant latest notices, and the delay in the import of recycled copper has basically become a fact. It is expected that the import standard of recycled copper will not be used until September.
Review of relevant tax policies
In 2001, China began to exempt scrap copper from VAT for recycling enterprises; on December 9, 2008, the State Administration of Taxation issued a notice abolishing the VAT exemption policy for waste materials from January 1, 2009. From 2009 to 2010, the value-added tax of waste materials was levied first and then refunded. In 2009, the value-added tax was returned to taxpayers at the rate of 70%. In 2010, the rate was 50%. On December 27th of the same year, the Ministry of Finance announced the cancellation of the value-added tax rebate policy for scrap copper. On June 26, 2015, the Ministry of Finance and the State Administration of Taxation jointly issued the Circular on issuing the preferential catalogue of value-added tax on products and Services for the Comprehensive use of Resources. Among them, the value-added tax rebate of 30% for recycled copper waste enterprises.
After the VAT rebate, the central government and the local government will share the VAT rebate according to a certain proportion (7.5 before the business reform is 2.5, and after the VAT is 5:5), and then the local government will refund the tax according to a certain proportion. Local tax preferential policies are different, according to Shanghai Nonferrous Network, Jiangxi and Anhui local governments have the most preferential tax rebate policies.
China's 2007 tariff implementation Plan has been approved and implemented since January 1, 2007. Among them, the tariff on copper scrap was reduced from 1.5% to 0%, which is intended to encourage the import of copper scrap in China. In 2020, the provisional tax rate of copper scrap import will remain unchanged at 0%, the most-favoured-nation tax rate is 1.5%, and the value-added tax is 13%.
The domestic scrap copper system is not perfect. Scrap copper traders, disassembly plants, scrap copper rod factories and other scrap copper enterprises generally do not include tickets for domestic scrap copper trading, unless there are tickets for imported scrap copper disassembly plants. Large enterprises often need to issue VAT invoices for the purchase of scrap copper, and these scrap suppliers are often not qualified for invoicing, which makes false VAT invoices continue to occur in the field of scrap copper.
"Click to sign up: 2020 Fifth China Electrotechnical Materials supply and demand Trade Summit
Scan the code to participate in the meeting or apply to join the SMM Electrical Industry Exchange Group