Japan Copper Ingot Price Hits 920,000 yen/t

Japanese copper ingot price increases under surging offshore market and lower yen rate. Nippon Mining & Metals increased the official copper ingot price by 50,000 yen to 920,000 yen per tonne on Wednesday just after the firm announced 870,000 yen of price on Monday. The new official price is the highest level after 940,000 yen on October 26, 2006. Japanese interests are cautious for the surging price. Copper ingot cash price increased for 4 trading days in a row rising to 330.95 US cents per pound on Tuesday from 305.15 US cents on March 28 at New York Mercantile Exchange. The increase represented US$ 569 per tonne during the period. Copper price increased by US$ 575 to US$ 7,290 per tonne on Tuesday from US$ 6,715 on March 28 at settlement of London Metal Exchange. The prices increased by 8.5% during the period. The higher offshore market was due to lower LME inventory, which was 179,850 tonnes on Monday and was the lowest level since late December, strong US economy and growing copper demand in China. Speculators’ buy apparently lifted the market price when Chinese copper demand is expected to expand by 8-10% in 2007. Japanese copper smelters breakeven point with imported ore is estimated to be 922,000 yen per tonne including 43,000 yen of premium and charges based on 119.88 yen per US dollar of telegraphic transfer selling rate and NY kerb on Tuesday, which represented US$ 7,338 per tonne.