RCs for blister copper CIF rose further amid value-added tax on gold

SHANGHAI, Dec 3 (SMM)—Mainstream refining charges (RCs) of domestic blister copper stood at 1,400-1,550 yuan/mt in November, delivery to factory, an average increase of 25 yuan/mt amid positive demand. RCs of imported blister copper stood at $150-165/mt, up $15/mt on average. RCs for blister copper cif rose further as China Customs has levied value-added tax on gold in imported plate-shaped copper anode since October which dampened interest in such products greatly, and blister copper inventories at domestic smelters were abundant.

Domestic mainstream refineries were undergoing discussion on value-added tax on gold with China Customs and tax authorities to understand whether the input tax can be deducted and specific methods. The implementation of this policy will also have a great impact on long-term order prices of blister copper cif in 2021.

Copper anode imports to remain stable at end-2020

China’s copper anode imports in October stood at 87,900 mt, down 14.49% from September but up 52.6% year on year. Total copper anode imports from January to October stood at 803,600 mt, up 31.23% on the year. Raw materials stocks are abundant amid stockpiling by refining plants, in spite of decline of blister copper imports in October.

Copper anode imports are expected to stabilise at end-2020. Imported plate-shaped copper anode, especially with a higher gold content, will decline amid gold value-added tax policy. But smelters signed more long-term orders in H1 2020 amid concerns on blister copper supply and there will be more deliveries of long-term orders by the end of the year.

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