Tighter Brass Strip Supply in Japan

Japanese rolled copper makers try to reduce brass strip order receipt from distributors in order to secure materials for contract users. Brass strip supply could decrease for the distributors market when the makers try to meet strong demand for copper alloy strip. A maker around Tokyo requested to distributors in March to reduce order of brass strip coil. The maker ships brass bar strip only for contract users. Other makers also reduce the order receipt when they have limited additional supply ability due to growing demand for copper alloy strip. Copper alloy strip demand increases since late 2007 due to higher demand for automotive connector pin. The rolled copper makers try to meet the higher order through full capacity operations. However, the lower productivity of the alloy strip with high strength and thinner gauge reduce their additional capacity to make other products. Brass strip distributors report delivery delay from the makers. Some dealers said the lead time is 3 or 4 months compared with normal 1.5 months. The market price is expected to increase to around 950 yen per kilogram in July from current less than 950 yen around Tokyo. Under the tight supply, some dealers try to secure materials by sourcing from South Korea or offshore sources. Japanese import of brass strip increased by 47.1% to 1,321 tonnes in March from a year earlier, announced by Japan Copper and Brass Association on Monday.