Japan Cemented Carbide Tool Output Hits Record in F2005

Japanese cemented carbide tool output increased by 6,408 tonnes in fiscal 2005 ended March 2006 from fiscal 2004, which reached 6,000 tonnes for the first time, according to survey of 40 member of Japan Cemented Carbide Tool Manufacturers’ Association. The shipment increased by 13.5% to 302.781 billion yen, which reached 300 billion yen for the first time. The output and shipment renewed the records for 3 years in a row. The output and shipment increased to 1.5 times in past 3 years. The makers increased the selling price to cover surging cost of tungsten in fiscal 2005. The users purchased the tool more than immediate use by summer to secure that before the price hike. Shipment of cutting tool, which represented more than 70% of total shipment value, increased to more than 200 billion yen in fiscal 2005 when indexable inserts, drills and end mills demand surged due to aggressive capital expenditure at home and abroad by the largest users of automotive parts makers. Sintered diamond and the tool shipment increased by 18.5% from fiscal 2004 when cutting process shifted to more precise and materials to cut were having more hardness and getting harder to cut. The tool export increased by 19.9% to record more than 70 billion yen mainly for cutting tool in fiscal 2005 from fiscal 2004 when Japanese automakers expand offshore operations. The import increased by 24.3% under the firm demand at home and abroad.