Better Utilization for Japan Copper Related Products

Nippon Mining & Metals improves the metal processing operation at Kurami plant in Kanagawa from the bottom of 20% utilization in early 2009. The operation at the plant could reach 80% level in June. Kobe Steel’s rolled copper production will recover 60% level in July-September compared with same period of 2008. Japanese copper related industry started to improve the operation from the bottom due to inventory adjustment by the buyers.

Nippon Mining & Metals’ Kurami plant produced monthly 3,500 tonnes of products including phosphor bronze at the peak in 2008. However, the production decreased to 700 tonnes level from November 2008 to February 2009 when the users were inventory adjustment. The production increased to 2,000 tonnes in April and 2,400 tonnes in May. The plant expects the operation could reach 3,000 tonnes in June.

Kobe Steel’s rolled copper production in January-March decreased to 10-20% level of the peak due to the buyers’ inventory adjustment. The production in April-June recovers 40% level of same period of 2008.

Japanese brass bar makers expect the production will decrease by 6% to around 177,000 tonnes in fiscal 2009 from fiscal 2008. The production is expected to improve to monthly 16,000 tonnes level in the second half year from 14,000 tonnes level in the first half. The production improves recently from the bottom of 9,890 tonnes in March while the production level was much lower than the peak in averaged 18,000 tonnes per month in the first half of fiscal 2008.