Japanese Copper Scrap Export Hits 8-Year Lowest in 1H2010

Japanese copper scrap export decreased by 28% to 137,919 tonnes in January-June 2010 compared with the same period of 2009, according to Ministry of Finance. The export was less than 141,866 tonnes in January-June 2003 and hit the lowest in late 8 years. The demand maintained weak from China, the largest importer of Japanese copper scrap, since February.

Chinese importers aggressively procured Japanese copper scrap in January when electrolytic copper market price seemed to surge up and they were willing to secure scrap inventory before Chinese New Year holidays. Japanese monthly export to China exceeded 30,000 tonnes for the first time in January.

The demand turned downward in February and maintained weak even after Chinese New Year holidays due to labor shortage and demurrage in Chinese coastal areas. In May, cash flow turned worse at Chinese scrap dealers since electrolytic copper market price dropped down. In June, Chinese government started regulation for mixed scrap import.

Japanese copper scrap export hit the January-June record at 214,882 tonnes in 2008. The first half year export was 190,661 tonnes in 2009, which represented below 200,000 tonnes for the first time since 2005 due to slow scrap trade in January-February caused by global economy deterioration. The latest half year export decreased more.

The export was 168,801 tonnes in July-December 2009. Japanese copper scrap export maintained downtrend since 2009 though Chinese economy has recovered strongly.