Japanese Copper Scrap Export Price in Weak Mood

Japanese copper scrap export price is relatively weak though electrolytic copper market price keeps uptrend since late July. Chinese importers are inactive to purchase Japanese copper scrap when yen exchange rate maintains strong. The export market is likely to remain weak for a while.

Scrap exporters around Tokyo 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 by around 20 yen compared since late July.

However, electrolytic copper ingot price surged by 70,000 yen to 680,000 yen per tonne during the same period. Domestic market price of brass turning scrap, the price of which is near to brass based mix scrap, jumped to 418 yen per kg from 365 yen in late July.

The trend is even weaker for thin electric wire scrap with insulator. Scrap exporters currently pay 230-240 yen per kg for the scrap containing copper at around 45%. The exporters are unwilling to pay 200 yen for the scrap with 40-42% copper. A large exporter source said the price level is almost as same as in late July or slightly higher by 10 yen.

China accounts for 90% in Japanese copper scrap export. However, Chinese importers are inactive to purchase Japanese scrap since February. Some importers posted inventory evaluating loss in early May when electrolytic copper market price dropped. These importers seem to hold high price scrap inventories and to have cash flow problems. Consequently they are cautious to conclude new scrap contracts.

Export market price is also impacted by strong yen trend. Chinese importers are willing to cancel exchange loss by lowering scrap price. In addition, some of Chinese importers are concerned scrap market price may downturn soon, said the large scrap dealer in Tokyo.