China's Copper Scrap Imports Surge in 2024 Amid Tight Supply and Policy Changes

Copper Scrap

China’s copper scrap imports saw a notable 13% increase in 2024 as domestic refined copper producers turned to scrap due to a tightening copper concentrate supply. This shift helped offset the shortages in copper concentrate, which traditionally serves as the primary feedstock for refining operations. The increased demand for scrap also led to a significant month-on-month rise in December, with imports soaring by 25% compared to November.

December Surge Attributed to Price Dynamics and US-Related Imports

A key factor contributing to this December surge was the reopening of the import arbitrage in the second half of November. This shift occurred as domestic copper metal prices in China rose above those on the London Metal Exchange (LME), making imports more economically viable. Additionally, scrap buyers accelerated the clearance of US-origin copper scrap at customs to avoid potential countermeasures after the election of US President Donald Trump. This urgency, combined with strategic import decisions, led to a marked rise in imports in the final month of the year.

Government Policy Supports Copper Scrap Imports in 2025

In a bid to further boost the availability of copper scrap, China has expanded its import duty exemptions for recycled copper feedstocks. For 2025, the government broadened the scope of products under HS code 74040000 to include not only recycled brass and copper feedstocks but also recycled copper and alloy feedstocks. Import duties for these materials remain at zero, a move that further encourages the import of scrap and helps meet the growing demand for copper in China.

Copper Cathode Output Declines in 2023-24

Aurubis, Europe’s leading copper producer and recycler, reported a 4% drop in its copper cathode production for the 2023-24 fiscal year, totaling 578,000 tons. The decline was driven by a 30% reduction in output at its Hamburg facility, where operations were delayed following a maintenance shutdown. Despite the setback in Germany, the company maintained a solid performance in Bulgaria, with 229,000 tons produced at its Pirdop site.