Japan Copper Ingot Price Hits 1.02 million yen/t

Nippon Mining & Metals announced on Thursday the firm increases the official copper ingot price by 40,000 yen to 1.02 million yen per tonne for October shipment, which is first over 1 million yen in 2 months and fourth high in the history. The averaged price is 1.015 million yen for the month. The higher metal price could lift the domestic copper market from scrap to processed products. The firm reflected the higher offshore market when settlement price increased by US$ 140 to US$ 8,301 per tonne at London Metal Exchange on Wednesday, which was the highest level after US$ 8,370 on May 16. Lowe yen rate also lifted the Japanese official price when telegraphic transfer selling rate decreased to 117.84 yen per US dollar, which was lowest level after 118.44 yen on August 15. Japanese smelters’ breakeven point is estimated to be around 1.027 million yen per tonne including 43,000 yen of premium and charges based on New York kerb on Wednesday, which represents US$ 8,355 per tonne for LME cash price. Copper scrap dealers around Tokyo will reflect the higher official copper ingot price for the transaction. They increase the scrap purchase price to secure materials under tight supply. No.1 copper wire scrap price reached 900 yen per kilogram for the first time in 2 months. Rolled copper products market price also increases around Tokyo after hike by Nippon Mining & Metals. Bras bar dealers try to increase the spot selling price by 30-40 yen per kg. Their offer price is likely to increase to around 850 yen for brass round bar with 25 millimeters diameter. However, they are still cautious for wide price increase under the slow demand.