Slow Japan Copper Scrap Export to China

Japanese copper scrap export transaction is still slow for Chinese buyers even after Chinese holidays for National Day when Chinese buyers are still cautious for potential price down. The export price increased recently but the increase is lower than international copper price increase during the holidays. A major exporter said the export price couldn’t show major increase immediately.

Chinese scrap dealers restarted the trading on Friday after the weeklong holidays. However, the buyers are still reluctant to purchase additional scrap from Japan. Japanese exporters said Chinese buyers show little interest in Japanese offers.

International copper market price reach US$ 8,000 per tonne at London Metal Exchange in late September, which was the first US$ 8,000 level since August 2008. The price increased to more than US$ 8,300 on Monday. Japanese exporters see Chinese scrap buyers expect the too high price would decrease.

Chinese power supply limitation impacts on Chinese rolled copper makers’ operations. Many of Chinese scrap dealers have overstock due to the lower consumption and they are reluctant to purchase additional scrap. Chinese copper scrap market price is lower for the international copper market. Japanese export price is 390-410 yen per kilogram for brass scrap, which increased by around 10 yen from end of September.

Japanese copper scrap export price could increase more for Chinese buyers when copper futures price increases at Shanghai Futures Exchange after the holidays. However, a Japanese exporter said the brass scrap export price cannot increase to 440-450 yen per kg, which is regarded as appropriate level for international copper price.