Japan Copper Scrap Buyers to Reduce Price and Volume in Jan-Mar

Japanese electric wire and rolled copper makers plan to reduce the copper scrap purchase volume significantly in January-March period. They try to adjust the production under the very slow market. They revise the pricing system when they can purchase electrolytic copper from smelters. The scrap dealers are forced to reduce the terms when they purchase scrap from the market. The changing pricing system could impact on the market price negatively.

The electric wire and rolled copper makers adjust the scrap purchase volume when they have to purchase electrolytic copper from smelters through the long term contract. The wire and rolling makers reduce the scrap purchase volume by 30-50% in January-March through the adjustment contract with the dealers. Some makers of copper foil and phosphor bronze reduce the purchase by more than 80%.

The copper products makers around Tokyo reduce the no.1 copper wire scrap purchase price to less than 90% of domestic official copper ingot price while they purchased at 91-92% of official ingot price. Some makers reduce the premium on the offshore price sliding scrap purchase price.