Japan Copper Rolled Products Demand to Keep Firm through F2006

Japan Copper and Brass Association announced on Wednesday it revised up the estimate for Japanese copper fabricated products demand through fiscal 2006 ending March 2007 to 1.041 million tonnes, increasing by 1.3% from originally estimated. Demand continues to grow for copper rolled products in wide usage fields and is especially expected to increase for copper strip and brass bar in the second half of fiscal 2006. Association also announced the mid-term demand estimate at 1.034 million tonnes in fiscal 2010. Annual demand for copper fabricated products could maintain the level at over 1 million tonnes in Japan, while decreasing slightly from fiscal 2006.Association originally estimated Japanese copper rolled products demand would be 1.027 million tonnes in fiscal 2006 as of March. The demand was relatively low in fiscal 2005 impacted by inventory adjustment of digital and information technology products. Then Association expected the severe market condition would continue in fiscal 2006.However, the demand gradually recovered from the bottom in the last half of fiscal 2005 and increased by 5.3% to 518,000 tonnes in half year to September 2006 from the same period of 2005. The demand volume in April-September 2006 was as high as fiscal 2004 when the demand was most active in late 5 years.Association forecasts the demand could increase by 2.3% to 523,000 tonnes in half year to March 2007 from the same period of 2005-2006 with no factors to decline the condition. Annual demand is expected to increase by 3.8% in fiscal 2006 from fiscal 2005, which would exceed 1 million tonnes for 4 years in a row.As to the mid-term demand estimation, the official of Association said the favorable demand condition might not continue for a long time. In addition the demand shift should occur among the users from copper fabricated products to other materials if copper price stays at the extreme high level any longer.