Reuters: Global Copper Traders Rush to China, Sales Applications Surge to Monthly Highs
Reuters, July 10 — Global copper traders are urgently redirecting copper shipments originally destined for the United States to Chinese buyers, as President Trump announced a new 50% tariff on August 9, which will be retroactive from August 1. As the world's largest copper consumer, China has seen a sharp increase in sales applications from overseas distributors since late June, reaching a monthly high. A seller is now scrambling to find alternative buyers for a batch of 1,500 tons of South American copper that was originally scheduled to arrive in the U.S. in late July or early August. Logistics industry sources said only copper that is already loaded in South America or currently being transported from there may barely make it before the deadline for the tariff to take effect. A Singapore trader noted that the key indicator reflecting the cost of imported copper into China — the Yangshan copper premium — fell by 5% on Wednesday to $62 per ton. "Sellers are eager to shift cargo to China before the (U.S.) window closes," said a Chinese copper trader, "which directly increased the number of sales applications we have received recently for exports to China."
Original article: https://www.toutiao.com/article/1837326321923273/
Statement: The article represents the views of the author and not necessarily those of the publisher.