Japan Copper Supply Gets Tighter

Japanese copper scrap short supply gets serious recently. The demand is firm when rolled copper makers increase the operation rate. However, the scrap supply is still low level. A scrap dealer said the company cannot secure scrap at loss making price. The scrap suppliers hold the inventory with expectation for higher price.

The scrap generation is low level but the short supply is due to scrap inventory by the suppliers. The suppliers hold the scrap when copper ingot market plunged in the month. Japanese rolled copper production keeps increasing from the bottom in last summer. The scrap supply is short for the demand.

A scrap dealer said the company cannot secure brass turning scrap in the month enough to commitment for the buyers and the dealer ships the scrap from the own inventory. Domestic brass bar makers started spot purchase to secure the requirement.

The demand for higher grade copper scrap is also tight but the condition is not serious as brass turning scrap. Domestic major rolled copper makers can secure the requirement so fat but the dealers manage to secure the scrap to meet the demand.

The higher operation rate by rolled copper makers will increase the scrap from the plants. Some scrap dealers apparently build the scrap with expectation for higher price. A dealer said the scrap supply could be hold by the dealers until domestic copper ingot price would reach 750,000 yen per tonne level while Nippon Mining & Metals reduced the official price by 30,000 yen to 630,000 yen on Friday.