Japan Cu and Mix Scrap Export Shows Steady for China

Japanese copper and mixed scrap export maintains steady this month, mainly for China. The demand is especially strong for mixed scrap containing mainly ferrous scrap. As to copper scrap, the export of mixed wire scrap is active bound for Tianjin. Meanwhile, some exporters are concerned that the export may suddenly stop since Chinese users seem securing copper scrap with an expectation copper price could rebound soon.

Japanese copper and mixed scrap export significantly decreased in and after October along the global economy recession. Japanese copper scrap export decreased by 32% to 28,175 tonnes in October from a year earlier and by 30% to 21,795 tonnes in November from a year ago, according to the trade statistics by Ministry of Finance. A large exporter source said the export volume in December seemed as much as November or less.

Scrap export was expected to maintain severe in January. However, in fact, Chinese scrap importers started active procurement this month. China is the largest importer of Japanese scrap. The demand is especially strong for ferrous scrap based mixed scrap. Ferrous scrap demand seems increasing in China.

A Japanese scrap dealer said that scrap traders in Tianjin are offering mixed copper wire scrap after the beginning of this year. A Japanese exporter source analyzes traders in Tianjin had held low inventories and started spot purchasing when copper metal market turned stable at the beginning of January. On the other hand, there are few scrap offers from Guangdong traders, those who are said holding mass inventories.

Chinese New Year holidays will start on 26 January. Japanese scrap export will stop before or after 20 January. Japanese scrap exporter expect the export of ferrous scrap based mixed scrap could maintain steady after the holidays. Meanwhile, the exporter said copper scrap export might slow down again since copper metal price is recently capped.