Japan Copper and Phosphor Bronze Strip Production Recovers in June

Japanese copper alloy fabricators’ production in June was quickly estimated at 59,330 tonnes by Japan Copper & Brass Association, which decreased by 29.6% from a year earlier and represented year-to-year minus for 11 straight months. Meanwhile, the minus range narrowed for 3 straight months since record 60.2% in March. The production recovered for copper and phosphor bronze strips thanks to the progress of inventory adjustment mainly in semiconductor industry. The production slightly recovered for copper tube and brass bar.

The total production exceeded 50,000 tonnes per month for the first time since December 2008. The year-to-year minus range improved from 41.5% in May.

Copper strip production was quickly estimated at 17,380 tonnes in June, down by 26.2% from a year earlier. The output kept above 10,000 tonnes for 3 months in a row. Copper strip users, mainly in semiconductor industry, are currently refilling their inventory after severe inventory minimization.

Phosphor bronze sheet and strip production decreased by 28.5% to 3,144 tonnes in June from a year ago. The output represented year-to-year minus for 10 straight months but the minus range improved from 80.6% in February 2009. The demand is increasing from digital appliances thanks to Chinese governmental economy stimulus measure.

Meanwhile, output recovery is relatively delayed for brass bar and copper tube. Brass bar production was quickly estimated at 12,534 tonnes in June, lower by 30.3% than a year earlier. The main applications are related to construction market such as gas appliances and water taps. Copper tube production was estimated at 11,300 tonnes, down by 19.5% from a year ago. The main application is air conditioners. Domestic construction market maintains stagnant with inactive capital expenditures.