By Dave Forest - Dec 01, 2016, 10:57 AM CST
Warnings of a potential surge coming in global copper prices this week. Emerging from a place few observers in the space are focused on.
The southern Africa producing nation of Zambia.
Industry sources in Zambia told Reuters this past week that some big changes are quietly afoot in the copper market here. Triggered by a change in government policy for local smelters.
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That’s a new tax reportedly being introduced by the Zambian government on imports of copper concentrates. With officials apparently planning to tax incoming shipments of concentrate at up to 7.5 percent.
Here’s why that matters for global copper prices.
Industry sources said the proposed tax would likely make concentrate imports uneconomic for most Zambian smelters. With these buyers unable to make a profit if the additional levy is added on top of already-thin margins.
AVB Price at posting:
7.2¢ Sentiment: Hold Disclosure: Held
