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Manufacturers, Exporters, Wholesalers - Global trade starts here.
China to Abolish Preferential Taxation Policy on Imported Copper

China is considering abolishing the preferential taxation policy for imported copper sulphide concentrate starting on Jan. 1, 2006, sources with the Ministry of Commerce said on Wednesday.

 

The move aims to help cool down the overheated investment in the copper industry, the sources said, predicting a drop in both the export of refined copper and the demand for imported copper.

 

Under the preferential policy, copper smelteries could import duty-free copper ores as long as their processed copper products were designated for exports.

 

Copper prices in China jumped from US$1,779 per ton in 2003 to US$3,328 per ton in the first half of this year.

 

The soaring prices have led the government to fear an investment bubble, prompting the announcement last month that the government would soon introduce a slew of measures to rein in the investment in the copper smelting industry.

 

The fast expansion of copper smelting capacity has already triggered vicious competition, which has brought down benefits to the industry.

 

The National Development and Reform Commission (NDRC) warned recently that if nothing is done, by the end of 2007, China will have an annual copper smelting capacity of 3.7 million tons, far exceeding what the country's copper concentrate resources supply can guarantee.

 

(Xinhua News Agency November 17, 2005)

 

Rumors Lead to Copper Price Dip
Gov't Set to Regulate Copper Firms
Copper Prices Soar to Record Highs
Copper Demand to Remain High
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