Copper Scrap Market Price Weaker in Osaka than in Tokyo

Copper scrap market price gap between Tokyo and Osaka is expanding when the price is cheaper around Osaka than around Tokyo. Around Osaka, one large copper tube maker is gradually decreasing copper scrap procurement as well as lowering the purchasing price for quarterly contracts when the maker plans to shrink copper tube production at Osaka plant. Additionally, Osaka based large brass bar maker continues to show a weak intention for scrap procurement.

Copper scrap market price maintains weak around Tokyo and Osaka in September due to demand stagnation. Meanwhile, the price gap is changing. The market price had represented relatively high around Osaka compared with the price around Tokyo previously. Recently Osaka price tends to become lower than Tokyo price.

Osaka based scrap dealers suggest local scrap demand is weakening along one large copper tube maker’s business downsizing. This maker’s Mie plant offered quarterly procurement increase for no.1 copper wire and thick nugget by 30% for October-December against July-September while showed a plan to decrease enameled wire scrap and no.1 heavy copper procurement.

At Osaka plant, the maker plans to limit purchasing items to pressed no.1 copper wire, thick nugget and pressed no.1 heavy copper for October-December. The procurement volume is offered slightly lower than in July-September and the offer price is cheaper by 1 yen per kilogram from July-September.

As for brass based scrap, Osaka based major brass bar maker ordered scrap for September consumption only once in August and reduced the purchasing volume by 50%. Moreover, the maker announced to scrap dealers the firm suspends material purchasing for September 26-30. Then local market price trend weakened.