Slow Japan Cu Scrap Users’ Consumption in July-September

Japanese copper scrap dealers are concluding negotiation with major users including rolled copper makers, copper foil makers and copper smelters for July-September shipment. The price is expected to keep the level for most of the makers as April-June. The volume could decrease due to lower consumption by the makers.

The scrap price in July-September is same level for foil makers as April-June while some of the makers reduce the price by 1 yen per kilogram. The buyers reduced the price by 2-3 yen for and the volume by around 20% for April-June. The volume increases for some makers in July but the volume usually decreases in August due to summer holiday.

The makers of flat and strip products would keep the scrap price in July-September as April-June. The volume is mixed depending on the makers when some of the makers increase the sales for automobile. Some of the brass bar makers seek lower price and volume for the scrap dealers. A major scrap dealer around Tokyo said the dealers have to pay high price for high grade scrap as No.1 copper wire scrap while the makers’ consumption is slow.

The smelters’ scrap demand is firm in July-September. The smelter grade scrap price increases under tight supply. The scrap dealers try to secure scrap even at higher price in order to meet volume commitment with the smelters.