Copper settlement price dropped to less than US$ 5,000 per tonne at London Metal Exchange (LME) for the first time in these 2 weeks. Lead, zinc and aluminium prices also plunged at LME following the copper decline. Nonferrous metals market enters adjustment phase. On the other hand, positive fundamentals are unchanged to support the market, such as stability of world economy and active demand for nonferrous metals mainly from China. Nonferrous metals market might not peak out yet and the prices are possible to try high stages again after the adjustment.LME copper settlement price decreased by US$ 53 to US$ 4,958 per tonne on Monday from Friday. The price declined below US$ 5,000 for the first time after February 1 with strong selling pressure by speculators since last weekend. The copper spot price decreased to US$ 4,929 in the afternoon session on the same day. Lead settlement price plunged by US$ 90.50 to US$ 1,195 per tonne and zinc settlement price by US$ 170 to US$ 2,115 per tonne at LME on the same day, following the weakening copper price. Lead and zinc prices decreased by 10% only in 2 business days.Nonferrous metals market turned weak after LME copper price marked US$ 5,145 on February 7, the highest price since the LME transaction shifted from pound-based to dollar-based. However, a research worker of Mitsubishi UFJ Research & Consulting indicates that the price down is due to the adjustment after the sharp rising and that nonferrous metals market could rebound with stable world economy.Speculative funds widely flowed into commodities market by “basket trading” for crude oil and gold and these funds led the soar of nonferrous metals prices. Crude oil price recently declined by more than 10% under the adjustment, which supported whole commodities market. Gold futures price plunged from above US$ 570 to US$ 540 per troy ounce following the weak oil price. Speculative selling pressure also impacted nonferrous metals market and commodities market is widely in the down trend.
Japan Steel Scrap Composite Prices (Sangyo Press)12/01/2022
|46600YEN (-200)||47800YEN (-100)|
|337.46US$ (2.86)||346.15US$ (3.69)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)