Japan Copper Scrap Price Rises with China Appetite

Japanese copper scrap market price hit the yearly high when Japanese official copper ingot price increased by 20,000 yen to 510,000 yen per tonne on Friday, which reached 500,000 yen level for the first time in 6 months. The scrap market is expected to higher level when Chinese buyers try to secure the materials at higher price.

No.1 copper wire scrap price increased by 20 yen to 420-430 yen per kilogram around Tokyo, which is around 50% higher than level in the beginning of the year. Some transaction is more than 440 yen for more than one tonne under tight supply.

However, some exporters offered 455 yen per kg level before official copper price increased on Friday. The Chinese led offer is higher than 435-450 yen of purchase price by electric wire and rolled copper makers.

Chinese copper market is higher than other areas when electrolytic copper and high grade copper scrap supply is short, according to Japanese source. The supply condition encourages Chinese buyers to secure the materials from Japan and other countries.