Japan Official Cu Ingot Price Continues Down to 330,000 Yen/t

Nippon Mining & Metals announced on Wednesday the firm revised down the official copper ingot price by 10,000 yen to 330,000 yen per tonne for domestic shipment in December. The firm has lowered the price 4 times within this month. The latest price is as low as the price during 13-17 February of 2004. The monthly average would be 352,100 yen without any more revision within December.

Nippon Mining & Metals reflected continuous decline of overseas copper markets and sharp surge of Japanese yen exchange rate against US dollar. On 16 December, offshore copper markets weakened due to the historically low housing starts in the USA and increasing copper inventories at warehouses designated by exchanges.

Copper settlement at London Metal Exchange was US$ 3,020.5 per tonne on 16 December, down by about US$ 100 from the time when Nippon Mining & Metals previously revised down the domestic official price. Copper spot price at New York Commodity Exchange was US 135.45 cents per pound, which hit the yearly lowest since US 135.50 cents on 5 December and the bottom since November 2004.

Spot exchange rate of Japanese yen became 88-89 yen per US dollar on 17 December, the strongest in 13 years, after US Federal Open Market Committee lowered the policy interest rate to 0-0.25%. The telegraphic transfer selling rate was 90.03 yen per US dollar on the same day, stronger by 1.45 yen from the previous day.