Bloomberg: China intends to increase copper exports

Chinese authorities have issued additional licenses which allow the country’s smelters to export copper without paying taxes, Bloomberg reported. The move can help local producers to boost their overseas sales amid tensions in the global market.

China is the leading supplier of refined copper. At the same time, the country's smelters are facing a shortage of raw materials, which negatively affects their profitability. In addition, copper ore processing fees in China fell to a record low at the beginning of this year, Bloomberg said.

According to the news agency’s sources, two major Chinese smelters intend to ship 45,000 tons of metal for this month's delivery to the bonded warehouses and Asian storage facilities, which are a part of the London Metal Exchange. The mentioned volume is to add up to the manufacturers' target sales for the year.

As the number of licenses issued by the Chinese government rose, more than a dozen major copper producers have been authorized to ship refined metal made from non-domestic ore tax-free, Bloomberg reported.