Nippon Mining & Metals Reduces Copper Price by 20,000 yen/t

Nippon Mining & Metals announced on Wednesday the firm decreased the official copper ingot price by 20,000 yen to 940,000 yen per tonne for August shipment. The price is the lowest level sine July 10 after unusual price revision during mid-summer holiday for scrap dealers. The monthly averaged price decreased to 947,300 yen. The firm reduced the official price after offshore market price plunged since August 11 when domestic industry started the holiday. The offshore price temporally increased to US$ 8,070 per tonne at settlement of London Metal Exchange and to 374.40 US cents per pound at cash price of New York Mercantile Exchange after union started strike at Escondida mine of Chile on August 7. After Escondida restarted negotiation on August 12, the offshore copper price decreased to less than US$ 8,000 per tonne at LME and to 351.30 US cents per pound at NYMEX. The offshore price decreased to US$ 7,682 per tonne at settlement and to US$ 7,635 at cash buy price in the afternoon session at LME on Tuesday, which was the lowest level since late July, under lower crude oil and precious metals price, higher LME inventory and expectation for potential higher interest rate in USA though union keeps strike at Escondida. Foreign exchange rate of yen increased by 0.49 yen to 117.10 yen per US dollar on Wednesday from previous day. The higher yen rate also pressured the official copper price. Japanese smelters’ breakeven point with imported copper ore is estimated to be around 943,500 yen per tonne including 43,000 yen of premium and charges based on New York kerb price on Tuesday, which represented US$ 7,690 per tonne in LME cash price.