Strong Export Lifts Japan Cu Scrap Price

Japanese copper scrap exporters get higher order especially for mixed electric wire scrap with 43-45% of copper content recently. A major exporter said Chinese buyers increase the appetite recently. The exporters increase the scrap purchase price to more than 300 yen per kilogram while the price was 280-290 yen in mid-July. Sustainability of the export boom is still uncertain due to higher yen rate and radiation issue.

Largest Japanese copper scrap buyer of China increase the scrap appetite since early June. The buyers increase the purchase with expectation for recovering copper price and improving supply balance.

A scrap exporter around Tokyo said Chinese copper scrap supply gets tight due to lower import from Europe and USA. Chinese buyers could increase Japanese scrap import.

With the higher export, Japanese copper scrap market recovers. The dealers have to pay 300-310 yen per kg for mixed electric wire scrap in container lot transaction since late July while the price was 270-290 yen before. Some of the exporters pay 270-280 yen for low grade scrap with around 40% copper content.

An exporter said the scrap price couldn’t increase more under current high level yen rate. Without yen rate correction, the scrap could decrease soon. Japanese radiation issue also impacts on the trade with China. Some cargos were rejected at Chinese ports due to high radiation. The negative factors could cool the heated market trend.