Slower Copper Scrap Trading with Lower Price, Tokyo

Copper scrap trading is being more stagnant around Tokyo when copper metal price plunged down. Copper scrap generation continues decreasing since mid July and scrap dealers cannot secure enough inventory. Many dealers decreased their shipment quota for copper alloy fabricators by several ten percentages in October. Scrap purchasing volume by copper alloy fabricators is also declining due to slow economy.Japanese official copper ingot price was set at 730,000 yen per tonne for domestic shipment in October, which hit the lowest in 19 months. The market price of no.1 copper wire scrap became to around 665 yen per kilogram around Tokyo, which reflected the low copper ingot price and dropped down by 26% from the yearly record 900 yen in July.Potential copper scrap inventory in the market has decreased along with the price down of copper ingot. In September, scrap dealers entered severe competitions to secure high grade scrap such as no.1 copper wire scrap, new cutting copper scrap or new cutting brass scrap. The market price skyrocketed partially.Some scrap dealers decreased their shipment quota for copper alloy fabricators by about 30% in October because their profitability turned worse. On the other hand, copper fabricators are decreasing scrap purchasing volume due to low shipment of their products, especially brass bar makers since mid September. Several brass bar makers are decreasing procurement volume such for brass turning scrap by more than 30% in October.