Japan Cu Foil Makers to Cut Quarterly Scrap Buy Price by 2,000-3,000 yen/t

Japanese copper foil makers would decrease copper scrap contract purchase price by 2,000-3,000 yen per tonne for April-June from January-March. The makers would reduce the purchase volume by around 20% due to slow demand for semiconductor. With the slow demand, the scrap supply could be loose.

A major foil maker around Tokyo notified scrap dealers of 2,000-3,000 yen per tonne lower premium for scrap purchase price on copper nugget for April-June from January-March. A dealer said the maker’s position is reasonable for the slow demand.

The maker’s purchase volume decreased by around 20-30% in January-March compared with July-September 2011 level. The maker indicates maximum 20% cut for the purchase volume depending on the transactions with the dealers.

Other foil makers would also reduce the purchase price and volume in April-June. Copper strip and brass bar makers would keep the scrap purchase price in April-June but they also could reduce the volume.