Japan Cemented Carbide Tool Shipment Shows Clear Downtrend

Japanese domestic shipment of cemented carbide tools represented the 2-digit year-on-year decline in October, according to Japan Cemented Carbide Tool Manufacturers’ Association. The shipment clearly turned to downtrend in and after August of this year, which represented the first y/y decrease in 6 years.

The total shipment value was 27.996 billion yen in October, down by 11.4% from a year earlier. The shipment showed the 2-digit decline for both domestic market and export. The export value had kept strong growth until this summer but represented the 2-digit down for 2 months in a row. Domestic production of cemented carbide also showed the 2-digit y/y decrease in October.

The shipment value of cutting tools maintained the y/y decrease for 3 straight months. The shipment volume of insert chips, the main item among cutting tools, decreased by 7.2% in October from a year earlier. Cutting tool shipment is impacted by slower demand for automotive parts when world automakers implement wide output reductions.

The shipment of sintered diamond and CBN (cubic boron nitride) tools kept the y/y decline for 3 months in a row, which represented the first y/y decrease in August since April 2004. These tools are used to manufacture difficult-to-cut materials such as hardened steels for bearings or heat-resistant alloys for air plane parts.

The shipment of wear-resistant tools showed the y/y decrease for 6 months in a row. The shipment of cemented carbide molds, the main item among wear resistant tools, is impacted by investment slowdown in manufacturing industries and cheaper product inflows from overseas. The shipment of rock drilling tools kept steady thanks to resource development activities at overseas.