Japan Cu Smelters Keep Talking with Miners, Buyers for Ore, Ingot Prices

Japanese copper smelters are expected to negotiate again with offshore miners for ore purchase price for 2008 and 2009 shipment. The smelters also talk again in January with domestic ingot buyers including electric wire and rolled copper makers for the selling price for 2008 shipment when the smelters still talk with offshore buyers. The domestic contract price of the ingot is expected to decrease for premium for 2008 shipment when Corporaci?n Nacional del Cobre de Chile (CODELCO) reduced Japan premium by US$ 13 per tonne. Japanese smelters could have to reduce the price by around 1,500 yen per tonne for domestic buyers. The buyers could seek wider reduction when domestic building activity is very slow caused by confusion for new building standard law. Japanese smelters apparently settled the price negotiation with offshore ingot buyers to US$ 102 per tonne for Taiwanese buyers, which is in line with CODELCO’s price. Japanese smelters are still talking with offshore miners for ore purchase in 2008 and 2009. Chinese smelters reportedly settled the talk at around US$ 45 per tonne of treatment charge and at around 4.5 US cents of refining charge. However, Japanese smelters resist the more than 20% lower margin level than 2007 and 2008 shipment.