China began to levy value-added tax on gold in imported blister copper from October

SHANGHAI, Nov 4 (SMM)—China customs began to levy value-added tax on gold in imported plate-shaped copper anode from October, meaning greater losses on copper anode with a higher gold content and dampening interest in such product. On the other hand, ingot-shaped blister copper, which is free from value-added tax on gold, was favored by buyers, and its RCs ranged between $135-140/mt cif as of early November.

Mainstream refining charges (RCs) of domestic blister copper stood between 1,350 -1,550 yuan/mt on a delivery to factory basis in October, with the monthly average RCs down 50 yuan/mt from the previous month. RCs of imported blister copper stood between $135-150/mt cif, with the monthly average RCs down $2.5/mt. 

In contrast to previous forecast of sharp declines, mainstream RCs of domestic blister copper stabilised between 1,400-1,500 yuan/mt in October as market concerns about the supply of blister copper produced with copper scrap were alleviated following announcement that renewable copper resource policy would take effect from November 1.

For more information, please refer to the November edition of the China Copper Raw Materials Market Report.