Higher Copper Scrap Price in Tokyo

Copper scrap market price is reaching record level around Tokyo after official copper ingot price hit 1 million yen per tonne again. No.1 copper wire scrap price is near 900 yen per kilogram. The higher scrap price is likely to continue under firm offshore ingot market. No.1 copper wire scrap price is 880-900 yen per kg around Tokyo as 880 yen in May 2006 when official copper ingot price hit the first 1 million yen per tonne. The price increased by around 40 from recent bottom of 630 yen per kg in early February. Brass scrap price also increases and the turning scrap price is around 690 yen per kg, which is record level and around 40% higher than recent bottom of 500 yen in early February. Copper scrap dealers are still cautious for potential plunge of the ingot market. However, no.1 copper wire scrap supply is tight and a dealer source said the dealers could increase the price to more than 900 yen per kg for large volume purchase. Japanese scrap dealers expects offshore copper ingot market will keep the firm tone with lower inventory held by London Metal Exchange. Japanese industry expects the scarp market will keep high level transactions without negative factors.