Japan Cemented Carbide Tool Demand Hits Widest Drop since 1975

Japanese domestic shipment of cemented carbide tools decreased by 27.1% to 22.756 billion yen in November from a year earlier, which represented the year-to-year decrease for the fourth straight month, according to Japan Cemented Carbide Tool Manufacturers’ Association. The shipment decrease widens month by month. The demand for cutting tool and mold decreases due to the worldwide automotive reduction of output.

The shipment of cemented carbide tools showed the 2-digit year-to-year decrease for the 2 months in a row. The shipment showed the decrease by near 30% for the first time since 1975, which the economy worsened after the oil shock.

The shipment of cutting tools decreased significantly in November from a year earlier because around 40% of tools are used for the automotive industry. The drill shipment for the printed circuit board decreased when the demand for electronics demand declines. The shipment of sintered diamond and CBN, cubic boron nitride, tools, which used to manufacture the hardened steel and heat resistant alloy slowed due to the weak automotive demand. Wear resistant tools demand weakened while the cemented carbide mold shipment is at lower level due to the capital expenditure decrease and the increase of import.

The shipment of rock drilling tools decreased in November for the first time in 17 months, compared with same month in 2007. The bit of drills increased but it is due to the existing order receipt for the construction project.