Japan Official Copper Price Drops by 40,000 yen/t

Nippon Mining & Metals announced on Tuesday the firm decreases the official copper ingot price by 40,000 yen to 940,000 yen per tonne for October shipment. The firm reduces the price to the lowest level after 920,000 yen on September 14 in order to reflect recent drop of offshore market and higher yen rate. The averaged monthly price is 976,800 yen. Copper price decreased to US$ 7,725 per tonne at settlement of London Metal Exchange on Monday, which was US$ 184.50 lower than Friday level. The market turned into pessimistic with negative outlook for US economy and higher copper inventory. Foreign exchange rate of yen also hit 114.88 yen per US dollar on Monday compared with recent bottom of 118.73 yen on October 15. Japanese smelters’ breakeven point is estimated to be just more than 945,000 yen per tonne including 43,000 yen of premium and charges based on New York kerb on Monday, which represented US$ 7,820 per tonne for LME cash price.