Nippon Mining & Metals Plans Peak Level Rolled Copper Output in 2H

Nippon Mining & Metals announced on Thursday the firm plans to increase rolled copper production to monthly 3,100 tonnes in second half of fiscal 2009 ending March 2010, which is same level as the peak of 3,184 tonnes in first half of fiscal 2008. The firm expects the production is more through December than the level in first half of fiscal 2008 while the production could decrease in January-March.

The demand for information technology related industry improved for personal computer and flat panel television since April after the demand had decreased since late 2008. The demand recovers when the users are finishing the inventory adjustment and the demand increases in China due to stimulus package. The firm estimates the current demand is around 70-90% of the peak in first half of fiscal 2008. The demand for automobile started to recover since June after the severe adjustment. The demand is around 90% of the peak in first half of fiscal 2008.

The firm’s rolled copper production reached monthly 2,850 tonnes in first half of fiscal 2009, which is higher than 2,670 tonnes of original plan as of May and 10% lower than same period of fiscal 2008. The firm expects the production will be 10% higher in October-December than first half of fiscal 2008 while the production could be 10% lower in January-March than first half of fiscal 2008.

The firm tries to regain profitability for metal fabrication unit for fiscal 2009 through higher production for rolled copper products. The firm tries to improve the profitability by reducing the cost and expanding the strategic products sales while the market condition is uncertain for January-March.