Germany Urges Europe to Block China’s Copper Scrap Purchases

URGENT UPDATE: Germany’s Economy Minister Katherina Reiche has just announced a call for Europe to urgently halt the immense flow of copper scrap to China, a move that may escalate existing trade tensions. Speaking at a Siemens Energy AG event in Berlin on Monday, Reiche emphasized that large German copper smelters are struggling to secure raw materials due to China’s aggressive buying strategy.

“The Chinese are buying copper scrap from the market in huge quantities,” Reiche stated, highlighting the critical impact on Germany’s copper industry. The minister’s remarks signal a potential shift in Europe’s trade policy, as officials grapple with the implications of China’s dominance in the global commodities market.

This urgent call comes amid rising concerns over the politicization of raw material supplies, a trend that has intensified as global markets react to protectionist measures. Reiche advocates for coordinated Europe-wide policies to prevent China from outbidding European smelters for scrap metal. However, specific restrictions have yet to be detailed.

In the first seven months of 2023, China imported approximately 204,000 tons of copper scrap from European Union nations, marking a 3.5% increase compared to the previous year. While these imports are a notable part of China’s supply chain, they still represent only about 15% of the country’s total copper scrap imports.

Reiche’s comments underscore a growing urgency for Europe to reassess its commodities strategy, as reliance on imports from China could jeopardize the resilience of European economies. She also called for enhanced mining of lithium and rare earths within Germany to bolster local supply chains.

As tensions rise, the impact on European industries and markets remains to be seen. Stakeholders are urged to monitor developments closely as Europe navigates these complex trade dynamics. What happens next could reshape the future of copper supply chains in the region and beyond.