Japan Cu Scrap Export Hits Remarkably Low Volume in October

Japanese copper scrap export decreased by 38% to 14,786 tonnes in October from a year earlier, according to the trade statistics by Ministry of Finance. The export hit the lowest volume since 10,814 tonnes in February 2003. Chinese importers seem to have minimized scrap procurement when electrolytic copper market price decreased in late September. The export unit price decreasedd by 21 yen to 213 yen per kilogram from a year earlier and hit the lowest since October 2009.

Offshore electrolytic copper market prices continued to decrease since August. Along the trend, Japanese copper scrap export decreased by 32% to 17,875 tonnes in September from a year earlier and represented less than 20,000 tonnes for the first time in four months. The volume decreased more in October. Japanese exporters seemed to hold high-price inventory while Chinese importers were concerned on continuous price down. Thus price negotiations were tough.

One Japanese exporter suggests another view that some of Chinese importers are shrinking scrap procurement due to money shortage under Chinese government’s tight monetary policy. Moreover, telegraphic transfer selling rate maintained 77-78 yen per US dollar in September-October and strong yen trend slowed Japanese export.