Japan Copper Scrap Export Hits 8-Year Low as May

Japanese copper scrap export decreased by 63% to 20,456 tonnes in May from a year earlier, announced by Ministry of Finance on Tuesday. The largest buyer of China reduced the import under plunge of international copper market. Chinese scrap import slowed down in second half of May after Chinese government announced the country bans mixed scrap import at all ports from June.

Japanese copper scrap export in May was higher than 15,212 tonnes in February when severe demurrage at Chinese port reduced the delivery along with major holiday for Chinese New Year. The export in May hit 8-year low as May since 20,804 tonnes in May 2002. The export to China was 18,317 tonne in May 2010.

International copper market price started to decrease since mid-April due to financial crisis in European countries. Copper ingot price decreased to less than US$ 7,000 per tonne at London Metal Exchange on May 5 after the price hit US$ 7,900 in mid-April. The price decreased by 18% to US$ 6,465.50 by May 19 from the recent peak.

Japanese trader source said Chinese buyers’ interests for Japanese copper scrap decreased sharply especially for mixed electric wire scrap to Tianjin when Chinese taxable standard copper price kept high in May despite of the plunge for international market. Chinese custom authority announced prohibition for mixed scrap import effective on June 1. With the severe restriction, exporters were cautious and hold the shipping for June delivery when they concern potential risk for failure delivery.