Bronze Makers Suffered from Low Operation and High Material Cost

Japanese bronze ingot and casting makers are suffered from low production and high material cost. The demand maintains stagnant from water taps and automotive parts. The market price stays low due to slow demand. Meanwhile, bronze scrap cost is currently reaching the yearly highest.

Japanese major bronze ingot maker said current ingot output volume is still 50-60% lower than a year earlier level. The demand keeps stagnant from water taps, the main application of bronze. Many sources indicate the demand is expected not to recover before autumn.

The demand for bronze casting products also maintains low from automobiles and construction machines. A major bronze fabricator said automobile production is recently recovering but orders for bronze automotive parts haven’t been stimulated yet.

Bronze consumers strongly offer price down. Especially, bronze ingot price is in imbalance with strong upsurge of electrolytic copper price. Bronze makers are offering 565-590 yen per kilogram for CACIn406, the major grade ingot. However, the price is expected to become around 500 yen at a price tender for a large-lot user scheduled at the end of July.

On the other hand, bronze scrap price is surging to the yearly highest level. Bronze makers wish to procure middle-grade bronze casting scrap, the main material, at around 385 yen per kg. However, a scrap dealer in Tokyo indicated they cannot offer below 400 yen.