Metal traders are betting China will soon reduce the value-added tax (VAT) on its manufacturing sector for the third year in a row, placing trades that will see them cash in if a cut is confirmed, three traders said this week. China classes nonferrous metals such as copper and nickel as manufactured goods, and the Shanghai Futures Exchange (ShFE), unlike other commodities bourses, includes VAT in its prices. Speculation on a VAT cut to 10% from 13% last week pushed the May and June copper prices into backwardation, two of the traders said, a market structure where prompt futures prices are higher than those for later ... (full story)