Japan Air Conditioner Output to Keep High Level by F2010

The Japan Refrigeration and Air Conditioning Industry Association (JRAIA) forecasted domestic shipment of air conditioning and refrigeration equipment would total 14.54 million units for major 15 items in fiscal 2010 ending March 2011, which would decrease by 2% from fiscal 2007. The shipment is estimated at 14.88 million units in fiscal 2007 and would decrease by about 1% every year. The shipment of commercial refrigerated cabinets will especially decrease toward fiscal 2010, while indoor air conditioners are expected to keep high level. To follow the steady shipment of indoor air conditioners, copper tube demand is expected to maintain firm in a middle term, although the effect of out-in production is unforeseeable. Copper tubes are applied to air conditioners’ heat exchangers and other plumbing which occupy about 20% of total weight of air conditioners. Basically copper tube demand follows the sales condition of air conditioners. However, in recent years Japanese air conditioner makers became to produce air conditioners at overseas and import the products into Japan, called out-in production. Out-in production represents more than 40% of Japanese makers’ total air conditioner production currently. As a result, copper tube demand was in downtrend domestically. In fiscal 2006 out-in trend temporarily paused since Japanese air conditioner makers needed to produce high-function products at their domestic plants.