US Export Restrictions Tighten Copper Supply Chain

The US Bureau of Industry and Security has introduced new export restrictions on lithium-ion battery black mass and tungsten scrap, aiming to strengthen domestic recycling and refining chains. The move is part of a broader effort to retain strategic secondary resources domestically.

Copper scrap was not included in the latest measures, but the US has already proposed encouraging 25% of high-quality copper scrap to remain in the domestic market. Shanghai Metals Market (SMM) believes that a 100% domestic sales requirement for copper scrap is unlikely in the near term due to insufficient domestic processing capacity.

However, new secondary smelting and recycled copper rod capacity coming online could reduce high-quality scrap availability for export. This tightening supply scenario may increase demand for newly mined copper, benefiting US-based junior explorers seeking to uncover domestic resources.