China's metal traders scramble to buy April copper on bets of VAT cut

Chinese traders are ramping up bids for physical copper in a bid to secure units before an expected cut to valued-added tax (VAT) in April.

The Shanghai copper market is betting on China's current 13% VAT being reduced as part of a raft of economic policy measures set to be considered when China's National People's Congress, the state legislature, returns later this month.
This would echo a similar move made last year when VAT dropped from 16%.
"Traders have enjoyed the previous cut so they want to repeat the same story," a seller in Shanghai told Fastmarkets.
"Everybody is betting the government will lower tax," a trading source said.

The rush...


Archie Hunter

April 09, 2020

16:55 GMT