Japan Smelters Expect Severe Negotiation for Copper Ore

Akihiko Ide, president of Japan Mining Industry Association and Mitsubishi Materials, presented his views at a regular press conference on Wednesday. He referred to a copper ore price negotiation for 2008-2009 shipment starting after LME dinner on 9 October. He said Japanese copper smelters would undergo severe terms in the negotiation with overseas ore suppliers and the price terms might become most difficult for the smelters in fiscal 2008 starting April.Mr. Ide showed a concern on US economy condition that might impact nonferrous metals market. On the other hand, he expected the steady demand for nonferrous metals mainly in Asia, especially China, and the recent return of speculative funds into nonferrous metals market. He estimated nonferrous metals market could sustain a relatively high level in near future.As to the supply and demand balance of copper ore, he expects overseas miners are willing to start new mines, expand mining capacities and output volume when copper price keeps as high as US$ 7,000-8,000 per tonne. He expected the miners would increase their copper ore supply around 2009.