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China is likely to raise the export tariff on copper sulphide concentrate from the current 5 percent to 20 percent starting next year.
Sources with the State Assets Supervision and Administration Commission (SASAC) said the move aims to discourage exports of refined copper and rein in the overheated investment in the sector.
In the first nine months of this year, China exported 68,474 tons of refined copper, down 40.9 percent from the same period in the previous year.
According to a report of the China Securities Journal on Wednesday, each year China's imports of refined copper make up one-third of the nation's total demand, while the imports of copper sulphide concentrates make up two thirds of the country's total demand.
An earlier report said China was also considering abolishing the preferential taxation policy for imported copper sulphide concentrate starting on January 1, 2006.
Under the preferential policy, copper smelteries could import duty-free copper ores as long as their processed copper products were designated for exports.
Copper prices in China jumped from US$1,779 per ton in 2003 to US$3,328 per ton in the first half of this year.
The soaring prices have led the government to fear an investment bubble, prompting it to announce a slew of measures to rein in investment in the copper smelting industry.
The fast expansion of copper smelting capacity has already triggered vicious competition, reducing rewards in the industry.
The National Development and Reform Commission (NDRC) warned recently that if nothing is done, by the end of 2007, China will have an annual copper smelting capacity of 3.7 million tons, far exceeding what the country's copper concentrate resources supply can guarantee.
The copper smelting industry is the fourth sector framed under the country's macrocontrol following the other three of steel, cement, and electrolytic aluminum.
(Xinhua News Agency November 24, 2005)
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