9 April | Other

China’s retaliation to hit US supplies of copper scrap — Bloomberg

China’s retaliation to hit US supplies of copper scrap — Bloomberg

Bloomberg reports that China’s retaliatory tariffs on American goods can practically halt supplies of copper scrap from the US, further adding to the shortage of the raw material at Chinese smelters.

Shanghai Metals Market (SMM) forecasts copper scrap imports to decline to 100,000 tons over the first four months of 2025, down from 440,000 tons during the same period in 2024. Trade will become unprofitable once new tariffs come into effect.

US scrap used to provide 20% of China's overseas purchases of the raw material, and was actively used as a replacement feedstock for scarce copper ore. Bloomberg estimates that the scrap accounted for about 30% of the country's refined copper production in 2023, making the sector particularly sensitive to current restrictions.

Duties put pressure on US shipments to China during the previous trade confrontation. Now the US once again risks losing one of its key export partners, Bloomberg notes.

SMM also forecasts US copper concentrate exports to slump to 50,000–70,000 tons, down from 460,000 tons in 2024.

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