Japanese analysts and industry interests expect higher price for copper and aluminium. Firm demand and tight supply lift the market prices. The price could try higher level when speculators’ money supports overall commodity market. An analyst for Mitsubishi UFJ Research & Consulting analyzes the copper market expects tighter supply balance impacting on the surging price though the supply was expected to increase before. The strike in Chile also results in more buy for the metal when the labors seek higher pay. The analyst said copper market became financial market. Index fund increases the position in commodity market and items with small volume including copper and silver are vulnerable for temporally buy. He said copper price could increase more at London Metal Exchange when oil market in New York would increase more and funds buy more copper. He said players should watch other commodities to understand copper market when fund managers watch overall market. A source of nonferrous metal division of Sumitomo Corporation expects aluminium market could keep the strong move with purchase by speculators and reach US$ 3,000 per tonne though the price is not always cheaper than copper price level. He said, however, the supply is not tight though the market approaches demand season. The source said users failed to purchase the light metal at favorable price under the surging market due to their slow move. He expects users could buy when the price would decrease to US$ 2,600 per tonne. However, he expects the high level market continues under high level oil and alumina prices along with higher production cost and current foreign exchange rate. He also said Japan premium level could increase more for July-September after increase for April-June.
Japan Steel Scrap Composite Prices (Sangyo Press)11/25/2022
|47200YEN (-400)||48300YEN (-500)|
|336.88US$ (-2.49)||344.73US$ (-3.2)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)