Japan Cu Alloy Products Output Forecasted at 800,000-850,000T in F2010

Masao Yoshida, chairman of Japan Copper & Brass Association and president of Furukawa Electric, presented a market view that Japanese domestic production of copper and copper alloy fabricated products would total 800,000-850,000 tonnes per year in fiscal 2010 starting in April, not reaching 1 million tonnes, at a press conference in Tokyo on Friday. He indicated the annual production is likely to total approximately 750,000 tonnes for fiscal 2009, lower than 807,000 tonnes in fiscal 2008.

Mr. Yoshida pointed out the market circumstances may have drastically changed including domestic demand shrinkage in Japan. He said Japanese copper alloy product makers should cultivate new markets and applications to survive.

Mr. Yoshida analyzed domestic makers’ output of copper and copper alloy strips has recovered to 90% or more level compared with the recent peak in the first half of fiscal 2008 thanks to the demand rebound from automobiles, semiconductors and electronic appliances. Some makers seem in full operations, he said.

Meanwhile, the demand recovery is slow for brass bar and copper tube, the main application of those which is construction. Mr. Yoshida said domestic demand for these products is unlikely to reach the previous high level due to the falling birthrate and the aging population in Japan.

He emphasized Japanese copper alloy product makers should strengthen technical development and cultivate new demand in cooperation with the users. At the same time, copper alloy product makers should follow the strong demand growth in emerging countries such as China and India or cultivate new demand fields related to environment.