Bronze Alloy Market Price Gap Widens between Nagoya and Tokyo

Market price gap is widening for bronze alloy ingot in Japan. The successful bid price at the latest price tender held in Nagoya in late April exceeded 800 yen per kilogram for CACIn406 while the successful bid price stayed at 765 yen at another tender in Tokyo. Along these indicators, the market price gap is gradually increasing.

At the price tender held in Nagoya in late April, the successful bid price was averagely 810-815 yen. One bronze alloy fabricator around Tokyo analyzed the price reflected the recent upsurge of electrolytic copper ingot price. Meanwhile, the successful bid price at the tender in Tokyo maintained 765 yen for 3 months in a row.

Demand for bronze alloy ingot is slightly increasing for water taps and construction machines, related to restoration and reconstruction in the areas damaged by Japan Earthquake. However, the demand is not strong compared with casted products such as bronze alloy bar.

Thus the market price is low for large lot sales while relatively high for small lot sales. The price tender in Nagoya was mainly for small lot sales.

On Friday, JX Nippon Mining & Metals revised down its electrolytic copper ingot selling price, the indicator, by 80,000 yen to 750,000 yen per tonne. Bronze alloy market price would decline sharply this week. The alloy fabricator around Tokyo said they are unwilling to lower the selling price since the cost price was high. But the market price might decrease more for large lot sales products.