Japan Official Copper Ingot Price Drops by 50,000 yen/t

Nippon Mining & Metals announced on Tuesday the firm decreases the official copper ingot price by 50,000 yen to 860,000 yen per tonne for June shipment. The price decreased to less than 900,000 yen for the first time after 840,000 yen on April 25. The averaged monthly price decreased to 877,700 yen. The firm reduced the price widely under plunge of offshore market price. Speculative money left the metal market with concerns including slower growth of US economy, inflation and higher US interest rate despite of Grupo Mexico’s closure of copper mine. The copper settlement price decreased to US$ 7,231 per tonne at London Metal Exchange on Monday, which was the lowest level since May 3. The copper cash price decreased to 332.85 US cents per pound at New York Mercantile Exchange, which was the lowest price after 326 US cents on April 27. Japanese foreign exchange rate decreased to less than 116 yen per US dollar, which is the lowest level since the end of April, with expectation of higher US interest rate. However, with plunge of offshore copper price, Nippon Mining & Metals reduced the official copper price by 50,000 yen per tonne just after the reduction on June 9. Japanese smelters’ breakeven point with imported copper ore is estimated to be 860,000 yen per tonne including 43,000 yen of premium and other charge based on NY kerb on Monday, which represented US$ 7,080 per tonne at LME cash price.