Japan Official Copper Price to Rise

Japanese official copper ingot price could increase by 40,000-50,000 yen per tonne as early as Monday. Higher offshore market and lower yen rate would rebound the Japanese price by 60,000 yen in 10 days after historical 120,000 yen drop on August 17. Offshore market rebounded during the period under better world stock and financial market after Federal Reserve Board and central banks increased the liquidity to cope with potential crisis due to US subprime loan issue. Copper price increased by 6% to US$ 7,379.50 per tonne at settlement of London Metal Exchange on Thursday compared with recent bottom of US$ 6,960 on August 17 while copper price increased by 5% to 328.65 US cents at cash price of New York Mercantile Exchange on Thursday from recent bottom. Potential supply concern also lifted the market under prolonging strike at Cananea copper mine in Mexico and potential strike at Southern Peru Copper. Lower yen rate also lifts the Japanese copper price. The rate decreased by more than 2 yen to more than 117 yen per US dollar at telegraphic transfer selling rate from recent bottom of 114.89 yen on August 17. Japanese official zinc ingot price is also expected to increase significantly under higher offshore market and lower yen rate. With 50,000 yen per tonne higher copper price and 36,000 yen higher zinc price, Japanese rolled copper makers could increase the brass turning scrap purchase price by more than 40 yen per kilogram.