Wider Brass Bar Price Gap in Spot and Contract Users in Tokyo

Japanese brass bar market price gap increased up to 100 yen per kilogram for free-cutting bar with 25 millimeter diameter between the price for the spot users and the contract users around Tokyo. The normal price gap is 20-30 yen. The price is 650 yen at higher price for the spot users while the price is less than 550 yen for some contract users. However, the spot price would decline to less than 600 yen by the end of May when copper price continues declining.

Japanese copper scrap price decreased by 98 yen or 19% to 422 yen per kg at the brass bar makers’ purchase in May compared with the level in the end of April. Domestic brass bar price declined by up to around 100 yen per for the contract users when the contract users’ brass bar purchase price depends on the change in copper scrap price.

On the other hand, the decline in one major dealer’s selling price was only 60 yen. The dealers’ offer price is relatively-high when the inventory stays at low level.