Japan Copper Scrap Price Hits 6-month High

Japanese copper scrap price surges with higher copper ingot price. No.1 copper wire scrap price exceeded 800 yen per kilogram, which is year high and is 30% higher than the recent bottom in early February. Brass scrap price is the highest level in 4 months. The scrap market price is expected to increase more. The price of no.1 copper wire scrap, which is used by makers of copper foil and rolled copper, is around 810 yen per kg around Tokyo, which reached 800 yen for the first time since November 2006. The price is 29% higher than 630 yen in early February.The price of brass turning scrap, which is raw material for brass bar makers, is around 640 yen per kg, which 28% higher than recent bottom. Nippon Mining & Metals increased the official copper ingot price by 50,000 yen to 920,000 yen per tonne for April shipment on Thursday, which reached 900,000 yen for the first time since October 26, 2006. The price is 33% higher than recent bottom of 690,000 yen in early February. The ingot price is expected to increase more when the offshore copper ingot price increases due to higher demand in China and lower inventory held by London Metal Exchange. Japanese copper scrap supply is tighter than a year earlier due to lower supply from market. The scrap dealers are cautious with limited availability of scrap and potential plunge of the market price.