Copper Scrap Market Price Keeps High Reflecting Low Generation in Tokyo

Copper scrap market price kept unchanged around Tokyo on Friday. Scrap supply maintained low level for the first three days of June. The market price represented high to reflect low scrap generation despite of downturn in overseas electrolytic copper market on Thursday. Meanwhile, scrap dealers expect copper scrap generation might increase in June along gradually increasing operations at automotive component plants.

Japanese copper smelters’ breakeven point for electrolytic copper ingot using offshore concentrate was estimated at around 770,000 yen per tonne on Friday, which was lower than 790,000 yen per tonne of JX Nippon Mining & Metals’ latest selling price of electrolytic copper, the indicator for Japanese copper scrap market price.

Scrap dealers were concerned JX Nippon Mining & Metals might revise down the indicator on Monday but the dealers couldn’t lower scrap purchasing price when scrap generation volume maintained very low. No.1 copper wire market price was around 710 yen per kilogram while some paid as high as 720-725 yen on Friday.

As for No.2 heavy copper scrap, the demand is strong from brass bar makers when the makers are increasing billet inventory before the electricity consumption saving in TEPCO’S service area for July-September under accident at nuclear plant in Fukushima. The market price was around 620 yen per kg for No.2 heavy copper scrap while some dealers paid 10-15 yen higher.

Brass turning scrap market price was around 480-485 yen per kg and some paid as high as 490 yen on Friday. One scrap dealer showed an expectation for brass turning scrap increase from car related factories. However, most dealers are still concerned whether they could secure enough volume of the scrap this month.