Scrap-Copper Traders Redirect Metal to Sidestep China Levies (1)

Some US metal dealers are redirecting China-bound shipments of scrap copper through countries including Canada, Mexico and Vietnam in a risky move to avoid 10% import tariffs, according to people familiar with the matter.

The rerouting underscores growing stress building up in the global metals supply chain due to the trade war between the US and China. US scrap is a vital source of raw material for China’s copper smelters and refiners, which account for about half of the world’s output of the finished metal. Prolonged disruption to that supply threatens to ripple across global markets.

While the full extent ...