Slower Demand to Reduce Brass Scrap Price in Tokyo

Bras bar scrap market price is expected to decrease around Tokyo. Brass bar makers apparently have less appetite for the scrap due to lower order receipt since July while the makers showed strong scrap buy until August. The makers are expected to reduce the scrap purchase more in and after October. The makers informed to scrap dealers to skip mid-month purchase in the month while the makers usually revise the purchase price for scrap 3 times in a month. The dealers see the makers’ production is such low level to reduce the scrap purchase while the makers planned 3 times purchase as of end of August. Some makers still purchase usual volume of scrap. However, the dealers see the high production level is to meet temporally higher order due to speculative purchase when the makers increased the rolling margin in July. The makers could reduce the scrap purchase more from now. A scrap dealer said makers with 3-month contract with the dealer indicate lower scrap purchase from October.