Japan Industry Expects Cu and Al Prices Maintain the Level

Toru Nakasatomi, a sales manager of copper and precious metals, Sumitomo Metal Mining, said overseas copper markets are leveling off despite of recent strong tones. He said that the strike in Peru pushed up the current copper markets but that the strike is illegal and would not continue so long. Mr. Nakasatomi pointed out the copper sale is weak. He analyzed the supply and demand balance is being easier entering the slow demand season in summer, though the supply was tighter a short while ago due to the furnace maintenances at copper smelters and the grade down of copper ores. Demand for copper is declining in USA due to the subprime problem and in Japan by the impact of slower new housing starts, described Mr. Nakasatomi. Yutaka Ishibashi, a general manager of Marubeni Corporation’s light metals division, expected LME aluminium price could sustain the bottom at US$ 2,800-2,850 per tones for a while. The highest price would be US$ 3,100-3,200 in the short term while could hit US$ 3,300 in a longer span.He pointed out supply concerns are emerging due to power crisis in New Zealand and South Africa. Demand for primary aluminium maintains weak with the stagnancy of US automobile and housing markets. On the other hand, the demand is relatively stable in Asia other than some countries such as South Korea.