China will implement an additional 5pc tariff on imports of US copper scrap, increasing the total tariff to 30pc, effective 15 December.
The new China tariffs are a part of $75bn total worth of new tariffs on US goods Beijing announced today in retaliation to planned US tariffs on $300bn worth of Chinese goods that are to go into effect in September and December. China's tariffs on US copper scrap were initially implemented at 25pc in August 2018.
US copper scrap shipments to China have dropped sharply year over year amid the higher tariffs and stricter scrap quality standards in China. For the first half of 2019, Chinese imports of US copper scrap totaled 52,405t, down from 259,667t in first half of 2018, according Chinese customs data
US copper scrap exporters have been forced to look for new markets to maintain volumes. Total scrap exports for the first half of 2019 totaled 450,186t, down only 2pc from the same time in 2018, with Malaysia and other Asian countries mostly offsetting lower shipments to China, according to the US Department of Commerce.
The Argus assessment for #2 copper scrap has fallen from $2.25/lb cif Asian port a year ago to $2.11/lb today, representing a loss of $5,900 per 20ft container.
