Flat Japan Cu Scrap Export Price Despite High Cu Ingot Market

Japanese copper scrap export price could keep low through the month. The export price kept the level since November while international copper ingot price renewed record high. Chinese buyers are squeezed in working capital due to tight monetary policy and fiscal year end timing while higher import tariff also reduces the appetite. Japanese scrap dealer source said some Japanese exporters show sign to increase the scrap purchase price.

Japanese major scrap export item of waste brass scrap’s export price is 370-380 yen per kilogram, which is same level since October. International copper ingot price hit first US$ 9,000 per tonne at London Metal Exchange in the month. Japanese official copper ingot price increased by 70,000 yen per tonne in first 2 weeks in December. Japanese brass scrap market price increased by 45-50 yen per kilogram.

However, the scrap export price keeps the price level when the largest buyers of Chinese buyers are away from the market partly due to tight working capital. Chinese companies tend to pay back the loan in yearend period. Chinese customs increased the base price of scrap import for the tariff in November. The base price is expected to increase more in January.

Chinese domestic copper scrap price is pressured by slow demand under tight power supply. Japanese copper scrap export price is expected to keep low through the month due to the situation of Chinese buyers.