China’s imports of copper scrap have surged due to a shortage of concentrate, a crucial component in building and power industries.

The country’s top copper consumers are smelters, and the shortage has led to a 25% increase in copper waste and scrap imports in the first four months of 2023.

The US-sourced copper scrap is priced lower than the CME price, which reached a record $5.1985 per pound or $11,460 per tonne.

Chinese buyers are deferring U.S. copper scrap shipments, with the London Metal Exchange (LME) being China’s main supplier.

The shortage is worsened by declining production at other mines, many in Latin America.

Macquarie predicts a shortfall between copper supply and demand will increase from 86,000 tonnes this year to 1.6 million tonnes in 2030.