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| Copper Scrap |
Refined copper producers in China increased their consumption of copper-bearing scrap in the first half of 2026. This shift occurred because copper concentrate availability tightened significantly and spot processing charges fell further into negative territory. Consequently, primary copper producers turned to scrap to maintain stable output levels despite stringent domestic policy changes.
China’s refined copper production relied on copper-bearing scrap for 25.2 percent of its feedstock during the first half of 2026. This figure represents an increase of 2.7 percentage points compared with the same period last year. Meanwhile, strict enforcement of reverse invoicing policies for recycled materials constrained domestic scrap supplies. Therefore, Chinese processors accelerated imports to compensate for local shortages.
China's imports of copper scrap reached 1.24 million metric tons in the first half of 2026, marking an 8.3 percent year-over-year increase. Inbound shipments from Thailand and Japan surged notably to offset subdued flows from the United States. Furthermore, imports from Thailand surpassed 200,000 metric tons, while Japanese shipments nearly matched that milestone.
Concentrate Strains and Regional Market Pressures
Copper concentrate availability remained under severe strain throughout the spring and summer seasons. Smelters expressed deep dissatisfaction with low treatment and refining charges offered by major mining firms. Additionally, adverse weather in Chile triggered one-month shipment delays for key qualities, amplifying prompt demand in the spot market.
ScrapInsight Commentary
Primary copper producers turned to scrap to offset severe concentrate shortages and negative processing charges.
Tightening supply dynamics in China will likely sustain high global demand for secondary red metals through the remainder of the year.
This structural shift accelerates the transition toward circular economy models within primary smelting operations.
