TOKYO, June 22 (Xinhua) -- Driven by rising nonferrous metal prices and a weakening yen, the metal value of Japan's 10-yen coin has climbed steadily, surpassing its face value.
According to the Japan Mint under the Ministry of Finance, the 4.5-gram 10-yen coin is composed of 95 percent copper and three to four percent zinc.
Based on metal prices published by JX Advanced Metals Corporation and Mitsui Kinzoku Co., Ltd., the raw material value of a 10-yen coin reached approximately 10.4 yen (around 0.06 U.S. dollars) as of June 15.
As nonferrous metals are globally traded commodities priced predominantly in U.S. dollars, the yen's depreciation has further inflated domestic metal prices.
Fueled by the rally in copper and zinc, the metal value of the five-yen coin, also minted from these materials, has jumped to around 6.3 yen, exceeding its face value.
Meanwhile, geopolitical tensions in the Middle East have driven up the price of aluminum, the primary material for the one-yen coin. Domestic wholesale aluminum prices in Japan rose to around 690,000 yen per ton on June 15, up about 20 percent from before the outbreak of the conflict in the Middle East.
With the region accounting for approximately 10 percent of global aluminum output, market concerns over supply shortages continue to intensify. Currently, the metal value of a one-yen coin represents roughly 70 percent of its face value.
While the Japan Mint has yet to disclose specific production costs of these coins, a Ministry of Finance official noted that the overall financial impact remains limited as materials are largely sourced from recycled coins.
However, when a coin's metal value exceeds its face value, there is a risk that people may attempt to melt it down illegally for arbitrage. Under Japanese law, intentionally damaging or melting down coins is punishable by up to one year in prison or a fine of up to 200,000 yen. (1 yen equals 0.0062 U.S. dollar) ■
