RTRS:China copper smelters mull exports increase after tax cuts
HONG KONG Aug 6 (Reuters) - China's copper smelters are planning to increase refined copper exports following recent tax adjustments that have reduced their export costs and made such trades more attractive, two sources at smelters said on Monday.
The move could shift thousands of tonnes of refined copper back London Metal Exchange warehouses and pressure global prices, which have so far shed more than 13 percent from the year's high hit in February.
"We plan to export at least 10,000 tonnes of copper a month. Total exports (from China) could be between 20,000-30,000 tonnes per month," said a sales manager at a large smelter, referring to copper exports in the second half of the year.
China's tax bureau has since July 1 cut the 3 percent value-added tax for tolled copper exports.
The tax reduction means that Chinese smelters, looking to profit from higher LME prices, will now be able to start exporting at a narrower price range compared with before.
