Japan Cadmium Less Brass Bar Demand Slows Down

Japanese cadmium less brass bar demand slows down after digital appliances makers almost finished the shift to the environmental friendly products to meet Restriction of the use of certain Hazardous Substances in electrical and electronic equipment or RoHS staring in July. The cadmium less products represent 25-30% for the total brass bar, which is in line with a year earlier level, though the air conditioner makers still submit the order. However, the demand could expand when automobile industry shifts to the cadmium less products. Cadmium less brass bar, which was launched in late 2004, was started to use mainly for appliances. The demand surged in April 2005 and the products represented around 30% of total demand as of March 2006. However, the growth slows down gradually. A distributor source said the demand keeps flat. Some distributors said the cadmium less products represent more than 40% of the demand. The demand is almost flat though the portion increased relatively when distributors’ sales decreased under plunge of copper ingot price. The slower demand expansion is attributed to complete of shift by appliances makers. Many appliances makers prepared to shift to the environmental friendly products by spring of 2006 due to the lead time for the export to Europe. A distributor source said the buyers are likely to shift to other applications when the orders shift to products with around 25 millimeters diameter from smaller sized products before.