Brass Bar Market Price Continues Declining, Tokyo

Brass bar market price is weakening around Tokyo. The current trading price among dealers is lower by at least 40% than July 2008, when Japanese official copper ingot price hit 1 million yen per tonne. Dealers’ inventory turnover is slowing down with stagnant demand. Meanwhile, copper ingot price, the indicator, maintains declining. Dealers need to adjust their reselling price with the current copper ingot price level, though their inventories were mostly purchased at higher price level. Dealers are hurrying to reduce their inventories since Japanese year-end and New Year holiday for 2008-2009 is longer than usual years.

Dealers’ trading price seems at average 400-450 yen per kilogram for free-cutting round brass bar with 25 millimeters diameter. The price range is widening when some dealers offer above 450 yen while other dealers present below 400 yen. The market price was around 750 yen in July 2008.

Brass bar demand is declining more and more in and after November. A dealer source said there are few orders for gas appliances and water taps when new housing starts keep slow under economic downturn. Dealers’ inventory turnover is slowing down with less shipment.

Japanese major brass bar makers cut its purchasing price for brass turning scrap by 17 yen to 253 yen per kg on 4 December, which is another indicator for brass bar price. The makers followed the down revision of Japanese official copper ingot price, which became below 400,000 yen per tonne for the first time in 4 years. The makers’ current scrap purchasing price is lower by about 60% from the recent peak at 638 yen in July 2008.