Weak Demand Delays Japanese Copper Alloy Fabricators Delivery to Dealers

Lead time of rolled copper alloy tends to lengthen in Japan when copper alloy fabricators are lowering production shifts due to the demand stagnation. Makers’ lead time is especially lengthening for phosphor bronze sheet and copper plate those which represent even worse demand condition. Some of dealers are suffered from stock out of non-standard size products.

The demand maintains totally weak for copper and copper alloy rolled products due to the market deterioration of electronic appliances though the demand keeps relatively steady for brass strip applied to automobiles. Japanese fabricators have lowered operating rates by extra non-operation days or shift changes.

As a result, makers’ product delivery to wholesalers tends to take longer time despite of weak demand. One dealer source explained lead time of phosphor bronze sheet and strip is lengthening to 1.5 months or more compared with 1 month before March.

Japanese phosphor bronze sheet and strip production represented below 3,000 tonnes per month from December to February, 15-20% lower than a year earlier level. Some of copper alloy product dealers suffer stock out. The dealer source said the inventory is especially low for phosphor bronze sheet with less than 0.2 millimeters thick due to extremely weak demand and difficult manufacturing process, which is used for connectors of light electrical appliances.

Makers’ lead time also delays for copper plate. One copper plate dealer said the lead time of a domestic major maker is lengthening by 0.5-1 month compared with the usual level. Another major copper alloy product dealer suggested delivery might also delay for other items such as copper and brass strips when the fabricators continue low operations with very few orders.

Delivery delay and stock out may become more serious toward July-September. Japanese copper alloy fabricators are likely to lower operations in summer due to electricity shortage and power charge hike. Some of copper plate makers have already noticed dealers to increase inventories before summer.