As more than 70% of Chinese smelters’ raw materials supply is imported materials, while a majority oftheir finished products cannot be exported due to high export tax rates, there are additional variablesimpacting Chinese smelters’ cost, such as arbitrage and the exchange rate.During the past decade, trade financing for making profits on the difference between the interest rateinside and outside of China, including copper financing, caused a large gap between commodity priceswithin and outside of China.
展开▼
