Japan Official Cu Price Declines by 20,000/T

Nippon Mining & Metals revised down the official copper ingot price by 20,000 yen or 6% to 310,000 yen per tonne for domestic December shipment on Monday. The firm reduced the price 5 times from the beginning of December and the new price is the lowest since early February 2004. The copper price declined by around 70% from one million yen of the yearly high in July. The monthly average price would be 347,800 yen without any more revision within December and it declined by 4,300 yen from previous revision on 17.

Nippon Mining & Metals reflected lower international price. Copper settlement at London Metal Exchange declined to US$ 2,826 per tonne on Friday, down by over $190 from previous revision while the copper spot price at New York Commodity Exchange declined by around US 5 cents to 130.50 cents per pound. The overseas copper prices are declining to the lowest since November 2004, reflecting the global recession.

Japanese smelters’ break even point with imported ore is estimated to be 315,000 yen per tonne including 43,000 yen of premium and charges based on NY kerb, which represented US$ 2,892 per tonne on Monday.