Tax Refund Policy Becomes Focus Amid Raw Material Shortage in Secondary Copper Rod Industry: Anhui and Sichuan Enterprises Await Policy Clarity [SMM Analysis]

With the Fair Competition Review Regulations implemented for over a month, its impact on the secondary copper rod industry is gradually becoming evident. The current situation of secondary copper rod makers has garnered significant market attention. Recently, the SMM survey team conducted another survey on secondary copper rod makers in Anhui and Sichuan. The details are as follows:

This survey covered 12 secondary copper rod makers in Anhui and 4 in Sichuan, with a total capacity of 1.6 million mt. It is understood that in the two major production areas of Sichuan and Anhui, the performance of enterprises varies. Some enterprises continue production despite unclear policies but generally face difficulties in raw material procurement. Some enterprises choose to operate intermittently to cope with policy uncertainties, while others opt to wait and see, anticipating the implementation of the tax refund policy after the September 15 tax payment period.

Compared with the survey results in late August, secondary copper rod makers in Anhui have shown a positive trend, with a slight increase in operating rates. Specifically, among the 12 Anhui enterprises covered in this survey, the proportion of operating enterprises rose to 58%. Meanwhile, we added a new sample of a secondary copper rod maker in Sichuan for this survey, but the results show that the situation of secondary copper rod makers in Sichuan has not changed significantly compared to the previous survey, with overall operating conditions remaining stable. "We can only take one step at a time now. If the tax refund policy is not implemented as scheduled, our operating pressure will be very high," said a representative of a secondary copper rod maker in Sichuan.

In summary, many enterprises are closely monitoring the implementation of the tax refund policy after the September 15 tax payment period. According to the Fair Competition Review Regulations and related policy provisions, local governments need to gradually eliminate improper market interventions and subsidies or refunds linked to tax revenue. This policy adjustment has caused significant uncertainty in enterprises' expectations for future tax refunds.

Looking ahead to September, with the gradual clarification of the tax refund policy after the September 15 tax payment period, the industry landscape may undergo new changes. SMM will continue to follow up on subsequent developments.