Japan Rolled Copper Output Rises by 4.2% in F2006

Japanese rolled copper output increased by 4.2% to 1.045 million tonnes in fiscal 2006 ended March 2007 from fiscal 2005, which reached 1 million tonnes for 4 years in a row and increased for the first time in 2 years, announced by Japan Copper and Brass Association on Thursday. The demand was firm for automobile and other applications. However, the output was lower than 1.047 million tonnes of forecast by the association in March due to slower demand since January. The output was highest in fiscal 2006 in past 5 years. The output increased for 11 items out of total 16 items from fiscal 2005, when the output increased for only 5 items from previous year. Especially, copper strip, brass bar and phosphor bronze sheet and strip output increased. The firm demand especially in the first half year of fiscal 2006 lifted the rolled copper output. The demand increased due to economy growth based on aggressive capital expenditure and export demand. The demand was firm for terminal connector for automobile and other parts, semiconductor lead frame, water valve fittings, gas machinery and electric devices. The demand kept firm despite of the extremely high copper ingot price when the copper ingot price hit 1 million yen per tonne in May 2006. The copper tube output recovered when air conditioner import from offshore transplant peaked. The association revised the output forecast upward twice in September 2006 and March 2007 under the firm demand. However, the demand started to slow down since late 2006 due to adjustment of semiconductor industry. The rolled copper output started to decrease in November 2006 and the output decreased in February in year to year comparison for the first time in 14 months. The output decreased in March when the buyers purchased only immediate requirement under extra high copper price and the actual demand slowed down.