Refined copper producers in China increased copper scrap use in early 2026. This was driven by tight concentrate supplies and falling processing charges. Scrap accounted for 25.2 percent of Chinese refined copper feedstock in H1 2026. This marked a 2.7 percentage point increase from the previous year.
Tightening Concentrate Markets and Policy Pressures
Primary copper concentrates remain under severe strain. Treatment and refining charges have slipped into negative territory. Stricter enforcement of China’s reverse invoicing policy added compliance costs. It also constrained domestic scrap availability. Chinese buyers turned heavily to international markets to counter these headwinds. Total copper scrap imports rose to 1.24 million metric tons in H1. This represents an 8.3 percent increase compared to 2025.
Shifting Global Trade Flows and Regional Sources
Traditional inbound scrap flows from the United States remained subdued. However, imports from Asian partners expanded significantly. Red metal scrap shipments from Thailand surpassed 200,000 metric tons. Imports from Japan nearly reached that same threshold. Both countries registered strong double-digit growth rates. Meanwhile, adverse weather in Chile caused shipment delays for primary concentrates. This further solidified scrap’s critical role in sustaining China’s output.
Market Impact
○ Impacted Metals: Copper, Copper Scrap
○ Direction: Bullish
○ Time Horizon: Medium-term
○ Affected Industries: Copper Smelting, Electrical Wiring, Construction, Manufacturing
○ Related Price Reports: Copper Weekly Price Report
○ Watch Item: Monitor Chinese customs data and scrap import quotas for ongoing shifts in regional procurement patterns.
SuperMetalPrice Commentary:
The structural shift toward copper scrap highlights the mounting vulnerability of primary smelting supply chains. As processing charges remain deeply negative, secondary raw materials are becoming the primary buffer for global output stability.
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