Copper Scrap Market Price Keeps Flat, Tokyo

Copper scrap market price maintained flat around Tokyo on Tuesday. Domestic price indicator rebounded along the price upturn at overseas copper markets. Weak mood was removed in copper scrap market. Meanwhile, scrap dealers are purchasing necessary items and passing spot procurement toward the year end regardless of copper price trend.

Japanese copper smelters’ breakeven point with imported ore was estimated at around 822,000-823,000 yen per tonne as of Tuesday, almost as same as JX Nippon Mining & Metals’ latest electrolytic copper selling price, the market indicator. The indicator may not be lowered at the present breakeven point. Meanwhile, a negative factor is that copper inventory of London Metal Exchange increased for 6 trading days in a row after December 13 though the inventory had kept decreasing since late February.

Scrap dealers around Tokyo are concerned on material shortage for only some items including brass turning scrap and new cutting brass scrap for January delivery quotas. Scrap supply is forecasted not to tighten seriously since copper alloy fabricators are likely to decrease scrap purchasing volume for January-March.

Market price is around 535 yen per kilogram for new cutting brass scrap. Some of copper alloy fabricators are requesting price down against scrap dealers. A major scrap dealer said they are unwilling to purchase new cutting brass scrap at high price of 540 yen unless domestic price indicator keeps the current high level next year.