Mixed Factors for Japan Quarterly Cu Scrap Price Talk

Japanese copper scrap price talk started between the buyers including rolled copper makers and smelters and the sellers including trading firms and dealers to set the long term contract based price for July-September. The rolled copper makers try to keep the price and volume as April-June level. The smelters try to cut the purchase price. The dealers try to increase the selling price under tight supply.

A major copper foil maker notified the suppliers of same level of scrap price and volume for July-September as April-June. The premium is apparently around 15,000 yen per tonne. Domestic foil makers operate at full capacity when some of major makers stopped operation after the major earthquake. The copper nugget supply is very tight due to lower generation of copper wire scrap. Domestic rolled copper makers are expected to keep the price and volume as foil makers.

A scrap dealer said without higher price, the firm would reduce the long term contract based supply volume. The scrap supply is already tight and could get tighter in summer time.

Domestic smelters would reduce the scrap purchase volume in summer due to maintenance outage. A dealer said some of the smelters could reduce the purchase price by more than 10,000 yen per tonne for July-September.