Japan Rolled Copper Output Hits 7-Year Low in October

Japanese rolled copper output decreased by 9.4% to 79,100 tonnes in October from a year earlier, which represents the lowest level as October since 2001, according to quick estimation by Japan Copper & Brass Association announced on Thursday. The copper strip output decreased for the first time in 7 months and the brass bar output kept low level due to slower automobile production while the copper tube output increased for the first time in 21 months.

The copper strip production decreased by 8.9% to 22,840 tonnes in October from a year earlier, which was the first drop since March. The production decreased by 11.0% for domestic shipment and by 2.5% for export. The strip production was monthly high in October 2007 due to firm demand for connector pin in automobile. However, the copper products output decreased in October when automakers reduce the output under slower demand since September.

The brass bar output decreased by 13.9% to 17,343 tonnes in October from a year earlier, which declined for 4 months in a row. The production was higher than September due to more operation days but the production in October hit the lowest level as October since 1982. The demand decreased for gas application, water tap and valve due to weakening construction market.

The copper tube output increased by 1.6% to 13,195 tonnes in October from a year earlier, which represented the first increase since January 2007. The output increased by 0.7% to 10,126 tonnes for domestic shipment and by 4.7% to 3,069 tonnes for export. The tube production apparently increased when air conditioner makers built the tube inventory for more production after the higher sales in the summer than expected. However, the tube output could decrease when the building demand decreases.