Nonferrous Metal Scrap Prices Totally Surge in Tokyo

Japanese nonferrous scrap market prices totally surged around Tokyo on Tuesday. Copper scrap market price rose by 35-42 yen per kilogram. Aluminium scrap market price increased by 5 yen per kg while lead scrap market price upped by 8-10 yen per kg. Scrap prices reflected the strong upsurge trend in overseas base metal markets. Another factor is low scrap generation in the market. Scrap dealers expect the market prices could increase more.

As to copper scrap, Nippon Mining & Metals raised its electrolytic copper selling price, the market indicator, to 730,000 yen per tonne on Monday, which hit the highest in late 15 months. Copper settlement at London Metal Exchange was US$ 7,464 per tonne on January 4th, US$ 118 higher than the yearend. Copper spot price at New York Commodity Exchange reached 338.80 US cents per pound on the same day and exceeded the yearly highest in 2009.

Scrap dealers are paying around 630-640 yen per kg to purchase no.1 copper wire scrap. The price jumped by about 42 yen to reflect Nippon Mining & Metals’ price hike. Most scrap collectors minimized their inventories at the yearend concerned about the market price dropdown. Consequently scrap supply wouldn’t increase despite of high market price.

Secondary aluminium alloy makers around Tokyo pay 154-159 yen per kg for new cutting aluminium scrap and 128-133 yen per kg for casted aluminium machine scrap. Secondary aluminium makers actively procure aluminium scrap. Scrap supply is relatively tight. Scrap dealers expect secondary aluminium makers may increase scrap procurement in January when primary aluminium price seems to continue surging.

Lead scrap market price is around 115-120 yen per kg for high grade scrap. On Monday, Mitsubishi Materials raised its electrolytic lead selling price, the indicator, by 20,000 yen to 280,000 yen per tonne. Secondary lead smelters pay about 130 yen for high grade lead scrap. Secondary lead smelters are not hurrying to secure lead scrap though scrap generation maintains low. Many smelters are holding material inventories for 3-4 months consumption.