Copper Scrap Trading May Activated by Leveling Off Ingot Price

Japanese copper scrap dealers expect scrap delivery increases when overseas copper market price levels off. Some dealers point out the delivery has already shown an increasing sign at the end of last week since scrap sellers are concerned about the downturn of scrap market price. Copper scrap trading wasn’t so active around Tokyo on Friday but scrap delivery may temporarily increase if offshore copper market continues to weaken.

Copper settlement at London Metal Exchange reached as high as US$ 7,950 per tonne on April 6th but hasn’t exceeded the resistance level at US$ 8,000.

Copper scrap generation maintains very stagnant in Japan when small-size factories continue low operations. Meanwhile, Nippon Mining & Metals’ selling price of electrolytic copper ingot, the domestic market indicator, has surged by 25% to 790,000 yen per tonne from the recent bottom of 630,000 yen in February. Copper scrap collectors may increase the delivery to the dealers if the market indicator levels off or turns down.

A large scrap dealer in North Kanto area said copper scrap offers suddenly increased on and after April 8th and the procurement became relatively easy. Copper scrap trading maintained inactive in Tokyo at the end of last week but one dealer said small-lot offers slightly increased.