Japanese Copper Scrap Export Hits 9-Year Low Volume in January

Japanese copper scrap export was 13,488 tonnes in January, which decreased by 38% from a year earlier and hit the monthly lowest since 10,814 tonnes in February 2003, according to the trade statistics announced by Ministry of Finance on Monday. Compared with 25,687 tonnes in December 2011, the import dropped by 47%. The import represented the lowest volume as January since 12,402 tonnes in January 2002.

Chinese importers have shown weak appetite for Japanese copper scrap though China is the largest importer of Japanese copper scrap. The annual export to China represented below 300,000 tonnes in 2010 and 2011. The annual export to China in 2011 hit the lowest volume in past ten years. The export has especially slowed down since September 2011 when electrolytic copper market price downturned.

Japanese copper scrap export also seems to have decreased in January when telegraphic transfer selling rate was as high as 77-79 yen per US dollar. Another factor was that some of Chinese buyers could not renew their import licenses even after the yearend. One Japanese scrap exporter pointed out there were many Chinese buyers those who failed to purchase Japanese copper scrap since renewals of their importing licenses were delayed.