Japan Nonferrous Metal Import Recovers Before Lehman Shock Level

Japanese nonferrous metal import recovered to the level as high as before global economic deterioration in 3Q 2008. In June, Japanese import of primary aluminium ingot was 185,055 tonnes and represented the highest level since February 2007, according to Ministry of Finance. The import increased largely thanks to favorable demand from automobiles and electric appliances. The aluminium alloy import approached 100,000 tonnes in June, the highest level since October 2008.

The cathode copper import was 7,233 tonnes in June, the highest since July 2008. The import of copper and copper alloy scrap widely increased in June, too. Domestic copper industry increased procurement of imported scrap and electrolytic copper when scrap generation maintained stagnant in domestic market.

As to Japanese nonferrous metal export, cathode copper decreased by 21.3% to 41,772 tonnes in June from a year earlier, according to Ministry of Finance. The export for China decreased by 42.6% to 18,136 tonnes and represented below 20,000 tonnes for 2 months in a row. Spot import decreased since Japanese smelters increased ingot shipment for domestic market to meet strong demand.

The copper scrap export was 18,103 tonnes in June, which represented below 20,000 tonnes for the first time in 4 months. The export for China decreased by 28.5% to 16,642 tonnes and showed year-to-year minus for 5 straight months. Chinese importers decreased offers for Japanese scrap while scrap generation maintained low in Japan.

The aluminium scrap export decreased by 18.7% to 7,833 tonnes in June from a year earlier. Chinese and South Korean importers decreased offers when Japanese aluminium scrap market price was relatively high.