Brass Bar Market Price in Weak Trend, Tokyo

Brass bar market price keeps flat with potential decrease around Tokyo. The price is around 740 yen per kilogram for 25-millimeter-diameter free cutting round bar, around 750 yen/kg for 10mm and around 800 yen/kg for 5mm at the selling price among dealers.

Japanese major brass bar maker decreased its purchasing price of brass turning scrap by 14 yen to 550 yen/kg on 12 July, the indicator for brass bar price. The indicator was revised down when overseas copper markets weakened. Copper settlement at London Metal Exchange slightly rebounded to US$ 7,318 per tonne on 13 July, though which was lower by more than 10% from the beginning of this month.

Brass bar dealers are disappointed with the decline of copper metal and brass turning scrap prices. A dealer source said they should reflect the price down of brass turning scrap on the selling price next week even though brass bar makers are raising rolling charges. Brass turning scrap price was revised down by total 50 yen/kg on 6 August and 12 August.

Brass bar market price is likely to decline by 10-20 yen/kg during 18-21 August (most dealers set a monthly closing day on 20th every month). A source said dealers’ shipment is lower by 20-30% year-on-year and the demand is unlikely to recover soon. Dealers’ profitability might become worse if the indicator continues declining.