Higher Ingot Price, Lower Yen Rate Lift Japan Copper Scrap Price

Japanese copper scrap market price is expected to increase when Japanese official copper ingot price will increase by 30,000-40,000 yen per tonne to reflect higher international price and lower yen rate. With higher price expectation for copper ingot, the scrap dealers increase the offer to secure the materials while the scrap supply is still tight.

The scrap dealers expect Japanese smelters will increase the official copper price by 30,000-40,000 yen per tonne as early as on Monday. The dealers increase the offer to 615-620 yen per kilogram around Osaka and to 590-600 yen around Tokyo for no.1 copper wire scrap while the dealers concern the short scrap supply. The dealers offer 415-425 yen around Osaka and 410-420 yen around Tokyo for turning brass scrap. 455-460 yen for new cutting brass scrap.

The scrap supply is tight. The dealers around Osaka said the transaction volume in February is around a fourth of normal volume. The dealers are willing to pay more depending on the supply condition.

Copper cash price reached US$ 7,248.50 per tonne at afternoon session London Metal Exchange on Thursday, which was US$ 122.50 higher than previous day price and the highest price after US$ 7,336 on January 26. NY kerb increased to US$ 7,360. Telegraphic transfer selling rate decreased to 92.83 yen per US dollar on Friday, which was the lowest level after 93.30 yen on January 12. Under the condition, Japanese official copper price represents near 720,000 yen per tonne compared with current 680,000 yen.