Japan Cu Scrap Dealers Hope Better Market

Japanese copper scrap market expects higher price in coming spring. The scenario is the price would increase toward March-April after Chinese New Year when copper ingot price started to increase at New York Commodity Exchange (COMEX). Japanese scrap price is still weak but a dealer source said the users’ purchase could turn the market into upward under lower scrap generation.

Offshore copper ingot price started to rebound in third week of January. The price reached more than US$ 8,350 per tonne at London Metal Exchange and 379.75 US cents per pound at COMEX. The price recovered 4-month high.

Japanese industry sources see the ingot price would slow down due to slow market under Chinese New Year. However, the sources expect the market could increase again and depending on Chinese mover, the price could increase to higher level.

Japanese official copper ingot price could increase by additional 20,000 yen per tonne from current 670,000 yen. Under the higher price expectation, scrap dealers try to secure more scrap from the market. If the official price would reach 700,000 yen or more, the dealers with high priced inventory could liquidate the stock.