Japan Cu Alloy Output Recovers in April from March

Japanese copper alloy fabricators’ production in April was quickly estimated at 44,420 tonnes by Japan Copper & Brass Association, which decreased by 48.6% from a year earlier and represented year-to-year minus for 9 straight months. The minus range narrowed in April when inventory adjustment progressed in automobile industries and the users procured copper alloy products seeing rapid upsurge of copper market price.

Copper strip production decreased by 56.2% to 10,050 tonnes in April from a year earlier. Copper strips are used mainly for automobile and semiconductor related applications. The minus range narrowed by 18.7 points compared with 74.9% in March. The output exceeded 10,000 tonnes for the first time since December 2008 though which stayed very low compared with the recent peak at 25,063 tonnes of 2 years ago.

Phosphor bronze sheet and strip production was 2,105 tonnes in April, down by 56.6% from a year earlier. Compared with March 2009, the production increased by near 90% and the year-to-year minus range narrowed by more than 20 points. The products are used mainly for electric appliances.

Brass bar production was 10,951 tonnes in April, which decreased by 45% from a year earlier while recovered 10,000 tonnes after 2 months. Copper tube production was 10,545 tonnes in April, which increased month-to-month despite of 27.2% year-to-year decline. Brass bars and copper tubes are consumed mainly in construction market.

Japanese automakers and electric appliance makers turned to replenish inventories in April after severe inventory adjustment. Chinese active demand for home appliances also stimulated shipment of phosphor bronze products. Meanwhile, copper market price jumped up by 70,000 yen per tonne and reached 500,000 yen per tonne in April. Copper product dealers and consumers moved to secure inventories.