Japan Copper Scrap Export Market Maintains Weak within 2010

Japanese export market price of copper scrap maintains low despite of upsurge of electrolytic copper market price. The main reason is weak demand from China, the largest importer of Japanese copper scrap. Japanese scrap exporters presently pay 370-380 yen per kilogram for non-shredded brass based mix scrap, with relatively less iron and stainless steel. The price has increased only by about 10 yen since early September.

Export market prices have scarcely increased for brass based mix scrap or thin electric wire scrap with insulator (containing copper at 40-42%), main exporting items, for recent several months though electrolytic copper market price has strongly surged. Meanwhile, brass scrap market price for domestic users has upped by 50-60 yen per kg.

One scrap dealer says exporting market price of brass based mix scrap is recently almost as same as domestic smelters’ purchasing price. Domestic smelters’ purchasing price was lower than exporting market price by several ten yen so far.

The main negative factor is continuous weak demand from China. Chinese demand for materials keeps strong but, Japanese scrap exporter says, Chinese copper alloy fabricators and scrap importers still hold high inventories. Several scrap exporters suggest Chinese importers are requesting even lower price against Japanese exporters due to strong yen trend.

In December, many Chinese importers repay their debts to banks. Tight cash position may weaken Chinese scrap import more. Japanese copper scrap market is unexpected to recover within this year. Japanese copper scrap export has represented below 30,000 tonnes per month except for January this year. The annual export may total below 300,000 tonnes for the first time since 2003.