Japan Cemented Carbide Tool Shipment Shows First Down in 6 Years

Japanese domestic shipment of cemented carbide tools represented the first year-on-year decrease in August since August 2002, according to Japan Cemented Carbide Tool Manufacturers’ Association (JCTMA). The shipment turned to year-on-year decrease for cutting tools, the main application of cemented carbide tools, due to sharp decline of Japanese automotive industry.

The total shipment value decreased by 7.1% to 26.2 billion yen in August from a year earlier. The shipment of cutting tools decreased by 7% to 19.5 billion yen and the shipment volume of insert chips, the main item of cutting tools, decreased by 3.5% to 20.9 million chips.

Japanese domestic car production decreased by 10.9% year-on-year in August, which showed the first year-on-year down in 13 months, according to Japan Automobile Manufacturers Association. Cemented carbide tool shipment represented year-on-year increase for export while year-on-year decrease as wide as 10.6% for domestic market in August. The tool shipment seemed to follow the output down of automobiles in Japan.

The shipment of sintered diamond and CBN tools also represented the first year-on-year decline since April 2004, which 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 year-on-year decrease for 4 months in a row.

The shipment of rock drilling tools kept steady thanks to the active development of resources and infrastructures at overseas.