Brass Bar Market Price Starts to Move Upward in Tokyo

Brass bar market price started increasing around Tokyo though the price had leveled off since the yearend. Copper fabricated product dealers are raising their brass bar reselling prices by 20-30 yen per kilogram on and after Monday when JX Nippon Mining & Metals revised up its electrolytic copper selling price by 30,000 yen to 740,000 yen per tonne. Almost all wholesalers are expected to implement the price hike within this month. Meanwhile, it is unclear whether the hike penetrates for large-lot trading due to weak demand.

Brass bar market price had leveled off at 560-580 yen per kg around Tokyo since December 2011 for free-cutting bar with 25 millimeters diameter. On and after February 27, several local wholesalers said the market medium price upped to 580-590 yen. Most dealers moved to the price hike with a consideration that copper price could maintain above 700,000 yen for a while. Some of major dealers kept the reselling prices unchanged as of Monday while they are expected to implement the hike within February.

Meanwhile, brass bar shipment hasn’t recovered for domestic construction market as well as for home appliances and automobiles. The price hike can penetrate for small-lot and spot dealing but it would be difficult for large-lot dealing. Despite of the weak demand condition, one major wholesaler suggested they wish to raise the reselling price to 620-630 yen for small-lot trade and 600 yen for large-lot trade. The wholesaler indicated the present price level at 580-590 yen is insufficient against the cost price.