San-Etsu Metals Plans Record High Brass Bar Output in F2010

San-Etsu Metals, Japanese major brass bar maker, plans to increase its brass bar and wire production by 19% to 78,694 tonnes in fiscal 2010 ending in March 2011 compared with fiscal 2009. The production is expected to hit the record volume when domestic brass bar demand is recovering to 80-90% level of the recent peak. Another positive factor is that plant operation of previous Nitto Metal Industry, a brass bar maker integrated by San-Etsu Metals in October 2007, would turn higher through a full financial year. Brass bar production is forecasted to exceed 70,000 tonnes in fiscal 2010.

Mr. Hiroyuki Tsuriya, president of San-Etsu Metals, explained at a press conference on May 13 that the firm’s brass bar and wire production in fiscal 2010 is expected to exceed record 68,265 tonnes in fiscal 2007 by more than 10,000 tonnes.

San-Etsu Metals’ brass bar and wire production increased to above 7,000 tonnes per month from previous 5,000 tonnes due to integration of Nitto Metal Industry in October 2007. However, domestic brass bar demand dropped down along global economic deterioration in and after autumn 2008. The firm’s production stayed at around 66,000-67,000 tonnes per year in fiscal 2008-2009, averagely 5,500 tonnes per month.

Japanese total brass bar production was 9,874 tonnes in March 2009, which represented below 10,000 tonnes per month for the first time in 34 years. The volume recently recovered to 16,000-17,000 tonnes per month. Brass bar demand is steady for applications related to cars and home appliances though the demand still stays stagnant for water taps due to inactive new housing starts.