Japan Brass Bar Makers to Keep Operation Rate in July-September

Japanese brass bar output is expected to keep monthly 16,000 tonnes level in July-September as current level. Major brass bar makers plan same level of production in and after July as current level when the housing demand hit bottom while the demand keeps firm for automobile and appliances. They keep the operation rate based on order backlog while their new order receipt slows down under lower copper market price.

Japanese brass bar output was 16,218 tonnes in March, which was 80-90% of level in and before autumn 2008. The makers’ operation rate improves to between more than 80% to full capacity after KITZ group’s Kyoto Brass closed Kyoto plant in September 2009.

Their new order receipt showed sign to decrease since mid-May. A brass bar maker around Tokyo estimates buyers and dealers might try to find the timing to purchase for additional materials when copper market price turned into decrease after they already built inventory earlier the year.

The domestic industry interests expect the demand wouldn’t decrease sharply. A major brass bar maker source said the demand keeps firm when housing market shows sign to hit bottom while automobile demand is strong at home and abroad.

The makers are likely to keep current production level except for summer vacation and maintenance outage. San-Etsu Metals plans monthly 5,800 tonnes of production in fiscal 2010, which is more than 80% of level before the financial crisis. The firm keeps the current production level in July-September.

KITZ group’s KITZ Metal Works has kept full capacity operation at monthly 3,000 tonnes since last autumn after closure of Kyoto plant of Kyoto Brass. KITZ Metal Works increases the operation to monthly 3,500 tonnes level in July and keeps the level through the year.

Nippon Shindo operated at near full capacity at 2,600 tonnes in April and May while Ohki Brass & Copper’s production reaches 2,500-2,700 tonnes level as first half of fiscal 2008. They expect the production level continues in and after July.