Chinese Appetite Lifts Japan Copper Scrap Price

Japanese copper scrap export price keeps increasing due to strong appetite by Chinese buyers. The scrap transaction price increased by 30% for mixed brass scrap with ferrous and bronze scrap at the dealers’ market. Some industry interests warn Chinese buyers could hold the purchase when Japanese scrap price advantage against offshore market is narrows due to the surge.

Chinese copper demand is firm due to major stimulus package and national stockpile activity. Chinese scrap buyers try to take chance to purchase cheaper Japanese scrap especially in April when the price gap widened with increasing Chinese market.

Copper scrap market price increased to 275 yen per kilogram for mixed brass around Tokyo, which is around 30% higher than 210 yen at the beginning of the month and 2.4 times of 115 yen in the beginning of the year. The dealers try to secure the materials at more than 290 yen for large lot transaction when the exporters offer 300-330 yen for high grade scrap.

Chinese buyers started to purchase Japanese no.1 copper and bronze scrap recently. A scrap dealer around Tokyo said some Chinese buyers order bronze scrap in the month while bronze was exported only in mixed brass scrap. An exporter said Chinese buyers’ offer is more than 50 yen per kg higher than domestic market price.

A Japanese major scrap dealer said some Chinese buyers turned into spot purchase recently. Japanese scrap industry started to concern lower demand from China.