New Price System Adopted for Brass Turning Scrap in Tokyo

Price system for brass turning scrap is partly changed among scrap dealers and brass bar makers around Tokyo. Some of major brass bar makers will adopt the average of Nippon Shindo’s brass turning scrap purchasing price for a certain period as the indicator for their purchasing prices in and after July. The price fluctuation range will become narrower and market change risk will be reduced for both scrap dealers and brass bar makers, while the makers’ purchasing prices now change whenever Japanese official copper and zinc ingot prices are revised. Several brass bar makers examine to introduce the new price system.The market price of brass turning scrap recently fluctuates more widely than before, which became to more than twice in late 2 years. Scrap dealer source around Tokyo said the market price currently fluctuates by more than 30 yen per kilogram in a day while the changing range was 5-10 yen before. Both scrap dealers and brass bar makers have higher risks to post depreciated loss for their brass turning scrap inventories.Some sources are concerned the market price range would widen between some brass bar makers using the new price system and other makers with existent price system. Scrap dealer source said brass turning scrap supply might become difficult with various prices in the market.