China’s Tax Crackdown Disrupts Copper and Metals Trade, Slashing Invoice Quotas and Transactions

• China has tightened tax invoice quotas, significantly impacting copper, aluminium, and silver trading.
• The crackdown targets “circular invoicing” practices used to secure bank financing through fictitious trades.
• Many companies have halted operations or delayed transactions due to aggressive quota cuts and stricter compliance checks.
• Physical trading activity, especially in copper, has slowed sharply, with spot trading volumes dropping 22% from March peaks.
• The tightening is expected to continue, with market participants anticipating ongoing disruptions until at least the second half of the year.

Source: idnfinancials.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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