Japanese Copper Scrap Users to Keep 3-Month Purchase Volume in Oct-Dec

Japanese copper alloy fabricators and copper foil makers are likely to keep 3-month contract volume of copper scrap purchasing for October-December almost as much as in July-September. Most scrap users forecast their productions would slow down in and after October. Meanwhile, serious scrap shortage continues in the market. At present, copper product makers are increasing spot scrap purchase or electrolytic copper utilization as an alternative material. Then most scrap users don’t decrease 3-month contract volume.

Japanese major electric cable maker’s copper foil and copper alloy product units offered scrap price and volume for October-December against scrap dealers in mid September. The maker kept the offer volume almost as much as in July-September and showed an intention to increase nugget procurement, a main material for electrolytic copper foil. The premium offer also kept the level at around 17,000 yen per tonne.

One major scrap dealer said copper alloy fabricators and copper foil makers are eyeing adjustment phase in and after October due to the end of Japanese government’s stimulus program for eco friendly cars. On the other hand, scrap supply was short against 3-month contract quota for recent several months. Scrap users were forced to cover material shortage by spot procurement. Thus scrap users don’t decrease next 3-month contract volume though their operations are expected to slow down.

Most scrap suppliers seem to approve the makers’ volume requirement for October-December. Meanwhile, one dealer said they are willing to lower 3-month quota rate and increase spot supply since copper scrap generation is unexpected to upturn for a while.