Japanese Cemented Carbide Tool Shipment in Gradual Uptrend

Japanese domestic shipment value of cemented carbide tools reached 20 billion yen for the first time in late 15 months. The shipment was 20.245 billion yen in February, shouwed 65.7% of year-to-year increase and 11.3% of month-to-month increase, according to Japan Cemented Carbide Tool Manufacturers’ Association. The shipment keeps the gradual uptrend mainly pulled by offshore demand.

Japanese tooling machine makers’ order receipt value has gradually recovered, the indicator for cemented carbide tool shipment, in response to the production increase of electric appliances and automobiles. Japanese shipment of cemented carbide tools shows slight month-to-month uptrend, which is expected to keep steady in the first half of fiscal 2010 (April-September 2010).

Export is relatively firm mainly for China. The current export value is around 75% level compared with the monthly average in the first half of fiscal 2008. The export value turned to year-to-year increase even for Europe in February, though the demand recovery was delayed in the area. In addition, there is a case tooling machines are exported with cemented carbide tools. The actual export rate is expected even higher.

Cutting tools shipment was 14.877 billion yen in February, showed year-to-year increase by 76.8% and month-to-month increase by 12.2%. Shipment volume of insert chips, the main item among cutting tools, was 19.602 million pieces, year-to-year increase by 101.8% and month-to-month increase by 12.6% thanks to the export demand. Along the tool demand recovery, domestic production of cemented carbide alloys has also increased.