Japanese Smelters Cut Official Cu and Zinc Price

Nippon Mining & Metals reduced the official copper ingot price by 10,000 yen or 3% to 350,000 yen per tonne for domestic shipment in February, announced on Monday. The monthly averaged price decreased by 2,600 yen to 352,600 yen from a previous revision on February 16. The firm reflected the overseas copper price plunge.

Copper price at London Metal Exchange rose to US$ 3,535 for buy price at afternoon session on February 9, which marked the highest since early December 2008, when the investors bought with expectation for Chinese higher copper demand after Chinese New Year holidays. Japanese official price also rose to 370,000 yen per tonne on February 10, reflected the overseas price.

But overseas copper price declined under the weak economy and inventory increase at warehouses registered to LME. The price at LME declined by more than US$ 270 to $ 3,151 per tonne on Friday compared with a previous official price revision in Japan on February 16.

On the other hand, Mitsui Mining & Smelting revised down the official zinc ingot price by 5,000 yen to 140,000 yen per tonne for domestic shipment in February, announced on Monday. The firm reflected the lower overseas price under slow demand. The monthly averaged price decreased by 1,300 yen to 143,700 yen per tonne from a previous revision on 17.

Zinc ingot settlement at LME declined by US$ 53 to US$ 1,059.5 per tonne on Friday, which marked the yearly lowest level. The inventory at registered warehouses was around 350,000 tonnes as of January 26 while the stock was 150,000 tonnes on the beginning of October 2008.