Japan Official Copper Price Raised to 650,000 Yen/t along High Offshore Market

JX Nippon Mining & Metals announced on Friday the firm raised electrolytic copper ingot selling price, the market indicator, by 40,000 yen to 650,000 yen per tonne for domestic shipment in July. The ingot price returned to the level as high as a month ago to reflect upsurge of offshore copper markets and temporarily weakening yen exchange rate against US dollar. The monthly average would be 628,000 yen without any more revision within July, up by 11,400 yen from the previous average.

Copper settlement at London Metal Exchange LME was US$ 6,920.5 per tonne on July 22, along which JX Nippon Mining & Metals revised the ingot selling price. LME settlement increased by US$ 149.5 from the previous day and continued to surge for 3 trading days. The spot price hit US$ 7,000 in afternoon trading of July 22, the highest since May 13.

Japanese major metal trader analyzed LME copper price upsurge on July 22 was mainly due to short covering when Federal Reserve Board Chairman Ben Bernanke was reported to have given a cautious view on US economic trend and market traders judged there was no more negative factors for short-term nonferrous metal market.

Meanwhile, the metal trader said, fundamentals of electrolytic copper market is relatively positive compared with other nonferrous metals and, that is, market players feel easier to purchase copper. Supply and demand balance of copper is tightening in Asia, mainly in China. Copper inventory held by warehoused registered to LME has decreased for 25 trading days. The inventory was 416,525 tonnes as of July 22, minus by 25% from the recent peak in late February.