China rebate plan could hike US prices

Mar 25, 2014 | 04:25 PM | Saranya Kapur

Tags  copper scrap, rebate, China, China Nonferrous Metals Industry Association, Comex, Saranya Kapur

NEW YORK — U.S. copper scrap consumers could face higher prices if a proposed rebate on value-added tax for China’s scrap recyclers is approved.

The China Nonferrous Metals Industry Association has asked the finance ministry to implement a 40-percent rebate on the 17-percent value-added tax on copper scrap imports, according to AMM sister publication Metal Bulletin. The association is awaiting government feedback on its proposal.

The move would be negative for U.S. scrap consumers and dealers who sell domestically, one U.S.-based scrap processor said. “It seems like China is trying to be aggressive on No. 2 scrap. Domestic brass mills rely heavily on No. 2 as part of their feedstock. ... With scrap volumes so low already, this is not a positive development.”....

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