Copper Price to Keep Firm for 2H F2009, Japan Industry Interests

Japanese nonferrous metal industry interests expect nonferrous metal market price could keep firm for second half year of fiscal 2009 ending March 2010. Copper settlement price is around US$ 6,000 per tonne at London Metal Exchange in last 2 months, which hit the recent peak of US$ 6,490.50 in end August. They try to find the trend through the demand in China, USA and Europe along with the financial market.

Mitsubishi UFJ Research and Consulting expects the LME price could be around US$ 6,500 toward early 2010 with strength of Christmas business while the price couldn’t increase higher due to slow consumption in USA and Europe.

Sumitomo Electric Industries also expects firm copper price at around US$ 6,000 under recovering demand and potential supply trouble due to labor dispute in mine sites while the firm concerns the price could plunge depending on financial market.

Some scrap dealers, however, the copper price could decrease to less than US$ 5,500 in November depending on Chinese demand.

Japanese aluminium industry interests show mixed view for the outlook. Marubeni Corporation expects the LME price is US$ 1,800-2,000 per tonne for second half of fiscal 2009 when the market already hit bottom but the industry is still middle of the recovery.