No.1 Copper Wire Scrap Plunges to Below 800 Yen/kg in Tokyo

The market price of no.1 copper wire scrap declined to below 800 yen per kilogram on 13 August when Japanese official copper ingot price was revised down to 870,000 yen per tonne on the previous day. This is the first down to less than 800 yen/kg in the late half year. The market price is likely to decrease more since overseas copper markets plunged down on 12 August.

No.1 copper wire scrap price is around 792 yen/kg in Tokyo, down by about 60 yen or 7% from the beginning of this month. The market price declined by more than 100 yen compared with the beginning of July when Japanese official copper ingot price hit the yearly highest 1 million yen. Following the price down, copper scrap generation decreased and the supply is even tightening.

Scrap dealers around Tokyo already finished scrap procurement as much as shipment quota for August. Scrap generation is unlikely to increase for a while and the procurement for September quota would be difficult, said a dealer source. Another dealer said last week they would purchase no.1 copper scrap even at 820 yen/kg.

However, dealers would not pay over 800 yen now. Overseas copper markets continue downtrend and Japanese official copper ingot price might be revised down by more than 30,000 yen/t along the offshore price level on 12 August. Copper scrap market price could weaken more.