Japan Cu Fabricators to Keep Low Scrap Procurement for Apr-Jun

Japanese copper fabricators are going to keep the copper scrap procurement volume for April-June as low as January-March or minimize the procurement less than January-March. Most fabricators decreased copper scrap procurement less than half for January-March but they still hold surplus material inventories. The fabricators continue inventory adjustment.

One of Japanese major electric cable makers will stop copper scrap procurement around Tokyo in April because of integration of electric wire plants. Around Osaka, the cable maker plans to halve scrap procurement at the copper fabricated product plant for April-June from the present.

A major brass bar maker will decrease material procurement slightly for April-June compared with January-March, though the maker has already minimized the purchasing volume to one third of the usual level.

Phosphor bronze product makers and copper foil makers are likely to keep material procurement volume unchanged from January-March. These makers have shrunk copper scrap procurement to 10-30% of the usual level.

A major copper scrap dealer, who deals nugget mainly for copper foil makers, is trying to diversify nugget sales to sheet, strip and tube makers. However, the dealer said domestic demand is very limited and the selling price is cheap and unprofitable for the applications other than copper foil.

Copper scrap dealers have increased their inventories preparing for the demand recovery. Yet the demand is expected to maintain significantly stagnant for April-June. Meanwhile, copper scrap demand is strong from China. Some Japanese dealers are exporting higher grade copper wire scrap or brass rod end scrap when there is little demand in Japanese market.