Japan Official Copper Price Continues Down to 730,000 Yen/t

Nippon Mining & Metals announced on Tuesday the firm decreased official copper ingot price by 20,000 yen to 730,000 yen per tonne for domestic shipment in January. The monthly average became to 737,300 yen. The official price decreased as much as by total 90,000 yen in 7 business days, when overseas copper markets continued declining after Japanese official price was revised down by 70,000 yen on January 4. The latest official price is at the lowest level since 720,000 yen on April 6, 2006.With weak copper price, market trading became stagnant among copper scrap dealers in Japan. Copper fabricators are reducing copper scrap purchasing volume with expectation copper price could down more. Scrap dealers hold stocks which were purchased in late 2006 at higher price. Dealers’ potential loss would expand as much as copper price declines when scrap shipment is slower and the market price is nominally weakening.Wholesalers of copper rolled products seem to set the reselling prices unchanged within this week in Tokyo. They would watch copper price fluctuation and revise the reselling prices after January 20 when February trading fiscally starts. The market price of copper rolled products was also supported by supply tightness and the upsurge of Japanese official zinc price on January 15.