US copper scrap sellers sharply increase discount in August to offset 25% Chinese import tax

Copper scrap from the United States has been flowing into the Chinese spot market at much steeper discounts to compensate for the 25% import tariff implemented in late August, sources told Metal Bulletin.

Metal Bulletin’s discount for No 2 copper scrap of 94-96% copper content widened significantly upward to 29-37 cents per lb in August, up from 26-28 cents per lb a month ago. One copper scrap seller told Metal Bulletin that increasing the discount offered was preferable to the costlier diversion of already dispatched cargoes. “Some of the cargoes were already on their way to China at the time of the [tariff] announcement. It would be very costly to transship them to other locations. We would rather sell them to China at a bigger discount to make up for the tariff,” a copper scrap seller source...

Published

Julian Luk

August 31, 2018

14:55 GMT

London