Japan Cemented Carbide Output Downs in February

Japanese cemented carbide tool shipment increased by 3.9% to 26.972 billion yen in February from a year ago while the cemented carbide production decreased by 6.3% to 490 tonnes, according to survey of 43 members of Japan Cemented Carbide Tool Manufacturers’ Association (JCTMA). Cemented carbide production represented year-to-year decrease for 8 months in a row. Cemented carbide tool shipment value also downed by 1.8% in February from a year earlier by exception of new 3 members.The demand growth became slower in Japan after July 2006 when domestic automobile industry postponed their new investment, which is the largest user of cemented carbide tools.Cemented carbide production became below 500 tonnes per month in January and February, though which had kept over 500 tonnes mostly since March 2005. Cemented carbide makers seem to expect cemented carbide tool demand won’t recover soon.Cemented carbide tool shipment value represented year-to-year growth ratio at less than 10% for 7 months in a row, even including new 3 members. The shipment value kept year-to-year increase for more than 4 years. However, the shipment recently levels off in Japan. In February, Japanese cemented carbide tool export also decreased from a year ago, which compensated slower growth of domestic shipment in recent months.