Brass Scrap Supply Temporarily Loosens in Tokyo

Supply and demand balance of brass scrap is loosing around Tokyo. Scrap dealers seem holding surplus scrap in response to brass bar makers’ inventory adjustment. Meanwhile, a brass bar maker source points out their order receipts are not decreasing currently. Scrap supply may tighten in and after October with stable demand for brass bar.

Brass bar makers recovered their purchasing volume of brass turning scrap and middle-grade copper scrap as much as the ordinary level in June and July along output recovery of brass bar. In August, however, some makers reduced scrap procurement again. One major brass bar maker around Tokyo halved scrap procurement in August with less business days and plans to minimize the purchase volume in September continuously.

A scrap dealer in Tokyo supposes brass makers’ order receipts might slow down due to low demand from constructions and high copper market price. Another indication is that brass bar makers are shrinking their inventories before the close of a half financial year at the end of September.

Meanwhile, a maker source says order receipts for brass bar are not decreasing but stable in August and September. Brass bar makers are expected to increase scrap purchasing volume again in and after October in the case that demand for brass bar keeps steady.