Japan Official Copper, Lead and Zinc Prices Hit Extra High Level

Nippon Mining & Metals announced on Tuesday the firm raised official copper ingot price by 50,000 yen to 950,000 yen per tonne for domestic shipment in October. The monthly averaged price became to 943,800 yen. The firm decreased the price by 40,000 yen on Thursday but revised up the price again only after 2 business days, when overseas copper markets sharply rebounded to the level as high as the beginning of October and foreign exchange rate of yen became much cheaper against US dollar. Japanese smelters’ breakeven point with imported copper ore is estimated to be over 949,000 yen per tonne including 43,000 yen of premium and other charge based on NY kerb on Monday, which represented US$ 7,548 per tonne at LME cash price.Mitsubishi Materials announced on Tuesday the firm raised official lead ingot price by 5,000 yen to 216,000 yen per tonne for domestic shipment in October. The price hit the record again following the previous revision and reached the level as high as 16 years ago. The monthly average increased by 3,800 yen to 214,800 yen. Japanese smelters’ breakeven point became high due to the surge of lead price at London Metal Exchange and cheaper yen against US dollar which were caused by nuclear test by North Korea, additionally entering the demand season for repairing lead battery. Mitsui Mining & Smelting announced on the same day the firm raised official zinc ingot price by 41,000 yen to 481,000 yen per tonne for domestic shipment in October. The price exceeded record 471,000 yen on May 12 and monthly average became to 471,200 yen. The official zinc price hit record on May 12 following the surge of overseas zinc market and increasing by 75% from the beginning of 2006. The price declined to 379,000 yen on June 21 following the adjustment trend at overseas, rebounded to 466,000 yen on September 6 and maintained the level at 400,000-450,000 yen.