Japan Interests See Copper Price Peaked Out

Japanese nonferrous metal industry sources analyzed and forecasted conditions of overseas copper and aluminium markets for the short term to Japan Metal Bulletin. Toshinori Kato, executive officer of Mitsubishi Materials, said overseas copper markets are currently under the adjustment phase to seek the moderate and stable price level. He indicated the moderate price level should be around US 200 cents per pound, which can balance with the supply and demand, fundamentals of the markets and the conditions of whole copper related industries. Mr. Kato pointed out too high copper price might cause adoption of alternative materials or higher portfolio risk. He said copper price is still at the too high level but the market fundamentals keep strong for a while under tight supply.Tokyo based major copper scrap dealer source analyzed the copper spot price at London Metal Exchange (LME) already peaked out and might not approach the level near US$ 8,800 per tonne again after much of speculative funds withdrew from the market. He indicated the copper market would settle down toward autumn, though the price could fluctuate at some range before the summer vacation season.An officer of aluminium products business at Sumitomo Corporation indicated LME aluminium price seemed to hit the peak of the year at over US$ 3,200 per tonne in May and might decline to US$ 2,200-2,300. However, he said, the price still maintains possible to rebound to US$ 3,000 even with few positive factors which are special for the aluminium market.