Japan Copper Fabricators Suffered from Higher Brass Scrap Cost

Japanese copper fabricators are suffered from higher cost price for brass turning scrap. Their purchasing price for brass turning scrap has accounted for 90-95% in alloy price containing 60% of electrolytic copper and 40% of electrolytic zinc per kilogram since spring 2006, while the ratio was around 70% a year ago.

Maker source said the cost price ratio of brass turning scrap is set at 80-90% per kg in most cases. However, overseas zinc market has soared up since this spring and Japanese brass bar makers must have raised their purchasing prices for brass turning scrap along the surge of Japanese official zinc price. The cost price ratio exceeded 90% in the cases.

Another factor was that Japanese domestic supply of brass turning scrap tightened so much due to the increase of the export mainly for South Korea. Brass turning scrap purchasing price represented 90% of record high level against copper and zinc alloyed price per kg as a result.

Refer to the attached table.