A rebate on a value-added tax for processing scrap copper is to be reintroduced in China to stimulate demand.
According to a report by Bloomberg, a 40 per cent rebate on the 17 per cent tax has been approved by the Chinese finance industry.
A rebate of 70 per cent was ended in 2011 and reintroducing it is likely to boost the amount of secondary copper purchased by Chinese metal recyclers.
It will come at a time when imports of copper into China have fallen to low levels, which according to China Nonferrous Metals Industry Association vice president Li Shilong came as a result of the Green Fence policy that led to less material being imported.
He added: “The industry is suffering losses and we hope the rebate restart will help.”