Cu Ingot Market Price Continues Declining in Osaka

Market price of electrolytic copper ingot keeps lowering around Osaka. The spot trading price was 271-276 yen per kilogram around Osaka on 19 December, which continued declining for 6 days in a row and hit the bottom since the end of December, 2003. Nippon Mining & Metals might revise down its copper ingot selling price, the market indicator, on or after 22 December from current 330,000 yen per tonne since the market price is weakening in advance.

The market price was impacted by the plunge of overseas copper markets and the underlying trend of stronger yen. Copper price at London Metal Exchange was almost below US$ 3,000 per tonne on 18 December, the lowest level since November 2004. Copper spot price at New York Commodity Exchange also continued lowering to US 126.95 cents per pound on 18 December, the bottom since 28 October, 2004. Copper prices maintained a downtrend at both markets for 5 trading days in a row.

The telegraphic transfer selling (TTS) rate was 90.87 yen per US dollar on 19 December, which weakened by 2.42 yen from the previous day. However, TTS rate was 88.45 yen per US dollar on 18 December, which was the strongest since 20 July, 1995 and surged by 5.18 yen (5.5%) within 5 trading days.

Nippon Mining & Metals is likely to revise down its copper ingot selling price on 22 December or 24 December with these negative factors.