International Nonferrous Metal Market Rebounds

International nonferrous metal market prices are rebounding. Copper price increased by 50% from recent bottom in December due to tight supply in Chinese market. Mood of base metal prices is improving when aluminium and zinc price increase. However, rare metal market is still dull due to overstock at the users.

Mitsubishi UFJ Research and Consulting expects copper price already hit bottom in December 2008, when the price hit 4-year low at US$ 2,770 per tonne at London Metal Exchange. Many industry interests expect the price keeps more than US$ 3,000 in April-September when the price kept more than US$ 3,000 in January-March 2009. Some interests expect the price bottom is around US$ 4,000 in April-September 2009 while others concern less than US$ 3,000 level. Japanese industry interests expect the ceiling level is US$ 4,500-5,000 per tonne in April-September 2009.

Zinc price increased by around 30% from recent bottom in December 2008. Mitsui Mining & Smelting expects the price could exceed US$ 1,500 per tonne level due to strong demand in China.

Aluminium supply is much more than the demand level when LME inventory hit record 3.5 million tonnes level. However, the price rebounded by 10% in a month due to higher demand in China. Despite of the Chinese demand, the price could be at most US$ 1,500-1,600 level under slower demand in developed countries.