Stronger Cu Scrap Market Price in Tokyo

Japanese copper scrap market price keeps increasing when the dealers increase the concern for potential tight supply. The dealers’ profitability is squeezed when the users including rolled copper makers reduced the scrap purchase price.

No.1 copper wire scrap market price is around 720 yen per kilogram at inter dealers transactions around Tokyo. A dealer said the price is more than 730 yen for large lot purchase. The dealers are forced to increase the purchase price while they tried to buy at 720 yen or less in earlier the month.

The scrap users including makers for copper foil, rolled copper and copper smelting reduce the scrap purchase volume since December to minimize market risk. Major brass bar makers reduced the brass turning scrap purchase price by 1,000-4,000 yen per tonne and a smelter reduced the premium by 3,000-4,000 yen in January.

However, a dealer said the scrap generation decreases in January and the dealers couldn’t secure the material in February. The tight supply mood supports the higher market price for scrap. The dealers’ profitability could be narrower when the users’ scrap purchase volume and price wouldn’t improve until April due to fiscal yearend inventory adjustment through March.