Nippon Mining & Metals to Decrease Cu Product Output in 2H

Nippon Mining & Metals announced on Monday the firm set its output plan of copper and copper alloy fabricated products at average 3,210 tonnes per month in the second half of fiscal 2008 (Oct08-Mar09), down by 9% from the corresponding period of fiscal 2007. The demand is expected to decline from telecommunication and digital appliance related applications. Meanwhile, the firm set the output plan of special steel products at average 210 tonnes per month for 2H of F2008, up by 44% year-on-year. The sales of high grade stainless steel products maintain steady for electronic parts.

The firm supplies copper, phosphor bronze, corson series copper alloy, and copper titanium alloy fabricated products mainly for electronic parts used in cellular phones, digital cameras, flat panel displays.

An official of the firm explained that the demand for cell phone related applications still keeps steady but that global cell phone market might show downturn in 2H of F2008. Despite of the weakening market, the firm expects the output could maintain the almost same volume as 1H thanks to the demand shift from copper beryllium alloy to copper titanium alloy from increasing demand for spring products and high strength products.

Customers tend to minimize copper product procurement currently when copper ingot price, the indicator, continues plunging. Nippon Mining & Metals tries to sustain the sales volume in 2H by utilizing its group coil centers for small-lot and short-delivery-time shipment.

As to special steel products, the firm could achieve the aimed output volume at average 160 tonnes per month through 1H. The sales of high functional stainless steel products increased for cell phone and liquid crystal panel related applications.

In 1H of F2008, the firm’s output of copper and copper alloy products was average 3,210 tonnes per month, decreasing by 5% year-on-year, and that of special steel products was average 160 tonnes per month, increasing by 2%. The actual output of copper and copper alloy products was 10% lower than originally planned 3,580 tonnes, announced on June.