Nippon Mining & Metals Reduces Copper Price by 30,000 yen/t

Nippon Mining & Metals announced on Friday the firm reduces the official copper ingot price by 30,000 yen to 830,000 yen per tonne for December shipment after the 10,000 yen reduction on December 1. The price is the lowest level since April 19. The averaged monthly price decreased to 837,500 yen. The firm reduced the copper price under plunge of offshore market and higher yen rate. Japanese smelters’ breakeven point is estimated to be just more than 833,000 per tonne including 43,000 yen of premium and charges based on NY kerb on Thursday, which represented US$ 6,825-6,855 per tonne. With the lower official copper price, rolled copper products dealers around Osaka said the users seem to increase the appetite under the lower price. Local rolled copper makers said the users are getting familiar to the high price level though the users bought only materials for immediate need before. The users are likely to increase the purchase when domestic smelters could reduce the official zinc ingot price in the week. The supply of rolled copper products could get tighter under the low level dealers’ inventory. Construction electric wire makers could be squeezed with smaller margin with additional drop of official copper ingot price. The electric wire makers are suffered from fluctuation of copper price when they have inventory using copper with around 900,000 yen per tonne. A major electric wire makers’ sales force said the profitability is damaged seriously. The source said the firm tries to reduce inventory and shorten lead time to hedge the fluctuation risk. However, the construction electric wire demand is high level when manufacturers build plants aggressively. The dealers have to secure materials to meet higher demand.