Exporting Copper Scrap Price Surges in Japan with China’s Demand

Market price of exporting copper scrap is rapidly rising in Japan. Orders from China have increased since the beginning of this month. Japanese scrap exporters are raising the price to reflect favorable demand, high electrolytic copper price and cheaper yen exchange rate. Meanwhile, Chinese demand seems still unstable. Japanese scrap exporter said the demand trend is unforeseeable before Chinese New Year holidays.

Scrap exporters around Tokyo paid 330-340 yen per kilogram for non-shredded brass based mix scrap, with relatively less iron and stainless steel, in late December. Now some exporters pay 370-390 yen at the highest. As to thin electric wire scrap with insulator (containing copper at 40-42%), exporters’ purchasing price had stayed at 180-210 yen per kg since August 2009. At present, some exporters approve 250 yen or more for a large lot.

Chinese demand has strengthened for Japanese copper scrap since the beginning of this year. China accounts for 90% in Japanese copper scrap export. Chinese scrap dealers were said to hold overstocks of low grade copper scrap in 2009. Chinese scrap dealers were inactive to conclude new purchasing contracts for October-December. Another factor was strong yen against other currencies.

Several Japanese scrap exporters point out Chinese scrap dealers still seem to hold surplus inventories but restart new procurement with a concern on strong market price trend. Scrap arrivals are temporarily decreasing at Japanese exporters when market price is expected to continue upward.