Japan Nonferrous Metal Industry Sees Strong Market Price to March 2011

Japan Metal Bulletin implemented survey on international nonferrous metal market in the second half of fiscal 2010 (October 2010-March 2010) against Japanese major nonferrous metal producers and consumers. Most answerers forecasted electrolytic copper market price range at around US$ 7,000-9,000 per tonne. Speculative funds are expected to flow into electrolytic copper market due to tight ingot supply. Copper spot price at London Metal Exchange exceeded US$ 8,000 per tonne on September 30, which hit the highest in 2 years and 2 months.

The answerers overviewed US government’s monetary easing policy makes a large affect on nonferrous metal market positively or negatively in the six months. Several answerers said negative market mood was released by economic and financial recovery in the world, especially in Europe.

Under the situation, speculative funds are focusing on electrolytic copper market. Copper demand is forecasted to continue increasing mainly for infrastructures in emerging countries. Meanwhile, ingot supply is unlikely to increase due to ore shortage.

Rare metal market prices are also strong, mainly for rare metals produced in China. Antimony price upsurge is remarkable as well as rare earths. Chinese government has recently led domestic antimony smelters’ integrations. Japanese rare metal users recognize this output control seems intentional to raise international market price.

Primary aluminium market price is forecasted to keep steady tone in the six months while the price upsurge is unlikely due to continuous ingot oversupply.