Higher International Price Lifts Japan Cu, Zn Price

JX Nippon Mining & Metals announced on Tuesday the firm increases the official copper ingot price by 20,000 yen to 820,000 yen per tonne for December shipment when international copper price renewed record at London Metal Exchange. Mitsui Mining & Smelting increased the official zinc ingot price by 5,000 yen to 240,000 yen when LME zinc price also increased.

LME copper cash price was US$ 9,211 per tonne on Monday, which was US$ 95 higher than previous trading day and renewed the record high of the price for 3 days in a row. Copper price also renewed the record in New York.

International copper supply is getting tight and LME copper cash price is higher than futures price since November. The limited supply lifted the market price due to strong demand in Asia, short supply of copper ore, Chinese limited electricity supply and production trouble in Indian smelters. Easier money supply also encourages the higher price accelerated by exchange traded fund and inventory building activity by financial organizations.

Copper suppliers also try to find the trend while they sold the metal at US$ 8,500 per tonne in October. Excessive liquidity lifted the copper price more than theoretical level based on supply balance.

LME zinc price increased by US$ 33 to US$ 2,322 per tonne on Monday from previous trading day. The price is lifted by price increase of copper and other nonferrous metal while zinc inventory reached 20 days of world consumption.