Japan Copper Ingot Price Hits High in 2007

Japanese official copper ingot price hit the highest level in the year under surge of offshore market. The official price increased by 90,000 yen per tonne or 13% from the bottom of 690,000 yen per tonne on February 6 after continuous drop due to plunge of offshore market. Nippon Mining & Metals announced on Friday the firm increases the official copper ingot price by 40,000 yen to 780,000 yen per tonne for February shipment. The price increased to the highest level after 820,000 yen in the late December after the 5th hikes in February. The averaged monthly price increased to 733,100 yen for February. Surging offshore copper price and lower yen rate lifted the Japanese price. Copper buy surged by speculators in offshore market on Thursday when crude oil price recovered US$ 60 per barrel and precious metals and gold price surged. Copper price increased by US$ 260 to US$ 5,875 per tonne at settlement of London Metal Exchange, which was the highest level after US$ 6,201 on January 2. The LME price increased by US$ 365 to US$ 6,075 in the afternoon session. Copper cash price increased by 11.1 US cents, which represented US$ 245 per tonne, to 276.20 US cents per pound at New York Mercantile Exchange. The NY price hit the highest level after 285.40 US cents on December 28. With the higher offshore price, lower yen rate also lifted the Japanese copper price. Foreign exchange rate of yen decreased to 122.55 yen per US dollar at telegraphic transfer selling rate when the market expects Japan will keep the much lower interest rate than USA though Bank of Japan increased interest rate slightly on Thursday. Japanese smelters’ breakeven point is estimated to be just more than 788,000 yen per tonne including 43,000 yen of premium and charged based on NY kerb on Thursday, which represented US$ 6,085 per tonne. When the estimate price is more than 8,000 yen per tonne higher than the new official price, Japanese smelters could increase the official copper ingot price again depending on the offshore market.