Copper scrap market conditions in midsummer ~Be careful with heatstroke~

                                          IRUNIV 2013/08/09

 The rare rising market of current domestic copper scrap is certainly to be said as hot as the heatstroke. The market price levels differ in the whole country, but generally, most varieties go up to the distribution price that largely exceeded the theoretical value, besides no outbreak, the state that the raw materials wholesale dealer give out of stock continues. In particular, the wholesale dealer who has a long contract with the producer is forced to the severe stock.
 The person in charge of the major trading company that collects copper scraps in Kansai area says in a sigh, “Anyway, it is out of thing. Even if the wholesale dealer has the stock, there is only the price quote of 780 - 790 yen/kg in May and June, it is impossible to weaken the stock costs due to poor new output. In addition, even here to buy, it is "out of thing and the price is high", that the market after all doesn't move due to the terrible high price. We cannot buy , too”.

?	Market changes in the price quote of Japanese copper

image1  image2


Both scrap and ground metal are in tightness with high price
 The copperwire that is typical brand‐name merchandise of copper scrap, speaking at the theoretical value, it is high to the utmost 680-690 yen from the current price quote 730 yen. But it practically exceeds 700 yen, as 710-715 yen. A high price of 98% of price quote ratio. Copper including for smetlers (to the mountain) is high again. It is 590-600 yen for normal, but it is said that the buying level in Kansai area is 650-660 yen. As mentioned later, it seems the image that Japanese market is the highest from all these prices reach even overseas, there seems to be a sell from overseas, but it is said that the price doesnot match near the exchange 100 yen.
 Although to lay in stock of electrolytic cathode copper, the premium of copper cathode reaches 200 dollars/tonne (Korean). Even to pull it from Malaysian Johor storehouse of LME copper stock, it needs more than a half year for shipping. Hence, the former person in charge of the major company talks clearly, “Both scrap and ground metal are considerably in tightness. I think that on the contrary the current LME copper market price is low”.

By the way, the market prices of overseas imports are as follows ...
 American bright mil berry (USA) USD7037/ton
 Europe bright mil berry (EU) USD7020/ton
 American candy(CIF/ASIA) USD6820/ton
 American birch cliff(CIF/ASAI) USD6590/ton

 The brass powder also goes up fairly in Japan.
 After the fire accident in Nippon Shindo (Osaka, Sakai city) on April 9, we asked Kitz and San-Etsu Metal for the transfer production of brass rods. But, after that, the buying price of brass powder of the two companies becomes equal to the brass powder buying price that Nippon Shindo announces, and so far Nippon Shindo price response of Korean market price 50-60 yen stopped and it matches the supply and demand for Japanese. By the way, on August 6 the buying price of brass cut powder which Nippon Shindo announced is 477 yen/kg.
 The exports of brass scraps to South Korea are classified in "copper series" by the customs code, and below is changes in the exports of copper scraps to South Korea.
 It surely changes at 1,000 tonne level from last December to March, but then decreases at 800 tonne level since April. It falls to 658 tonne in June.
 It is predicted because particularly the former two companies' buying of brass powder was active in July, so the exports to South Korea decrease more in July.

Changes in copper scrap exports to South Korea

image3 The handling company says, "If this high price stock continues, long contract between the raw materials wholesale dealer and the producer will also become negatively". However, the producer also tends to buy from the wholesale dealer that has a long contract, and even the spot is difficult. If the high raw materials are not sold, it will be useless”. It is a copper crap market with difficulty to buy and to sell.
 The wholesale dealer that has made a long contract continues the stock price that is higher than the current sale price, and it will achieve a supply contract, but because the unit price of copper series is high, a big working capital is necessary. The best thing is that the market price rises, 780-790 yen at the basis of price quote for copper. To wholesale dealer who has high stock, it is the best that the price quote rises to 800 yen. According to IRUNIV expectation, LME copper market price expects 7,500 dollars in the short term.
(IRuniverse su-sann)

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