Brass Bar Market Price to Hit Bottom in Tokyo

Brass bar market price is likely to hit bottom around Tokyo after 6-week downtrend. The reselling price among dealers is presently 560-590 yen per kilogram for free cutting bar with 25 millimeters diameter. The bottom price seems to stop lowering since Japanese major brass bar makers raised the purchasing price for brass turning scrap, the market indicator, by 18 yen to 416 yen on Monday. The indicator rebounded for the first time since June 1.

Dealers’ brass bar reselling price maintained weak since early May when brass bar makers’ scrap purchasing price continued lowering. One major wholesaler reduced the reselling price by 60 yen in May and by 30 yen on June 9. At the same time, the range of brass bar market price widened along rapid decline of the market indicator. In late May, the highest price was around 650 yen while the lowest price was around 590 yen.

The highest price is currently below 600 yen and the bottom price around 560 yen. A major brass bar dealer around Tokyo said the bottom price wouldn’t lower more since brass bar makers’ scrap purchasing price upturned.

Dealers seem to set the reselling price unchanged this time and raise the price if the indicator continues to surge. However, it is unclear how much the indicator could rebound. Another negative factor is that brass bar demand maintains inactive mainly from construction market.