Japan Makers Plan Low Level Cu Tube Output in 2H

Japanese major copper tube makers plan to produce 82,000 tonnes in the second half of fiscal year ending March 2009, which represents as same as corresponding period of previous year. The production in the first half year was apparently 8% lower than original plan due to slower economy and building activity. The production could also decrease from the plan under uncertainly in the economy.

Sumitomo Light Metal Industries expects the copper tube production increases by 3% to 30,000 tonnes in the second half of fiscal 2008 from same period of fiscal 2007. The firm aims to increase the shipment for air conditioner, CO2 water heater and export. Hitachi Cable targets to increase the production by 2% to 2,040 tonnes.

Kobelco & Materials Copper Tube plans to decrease the production by 2% in the second half of fiscal 2008 compared with corresponding period of fiscal 2007 due to lower demand for room-air conditioner. Furukawa Electric estimates the production decreases by 8% on a year-to-year comparison.

The makers’ production of copper tube in the first half was lower than the plan due to slower economy and lower purchase volume by the users with expectation for price cut when copper ingot price plunges. The condition continues now and production by some makers already is lower than the plan.