Japan Cemented Carbide Tool Shipment Keeps Strong in F2008

Japanese domestic shipment of cemented carbide tools is forecasted to increase by 3.5% to 369.8 billion yen through fiscal 2008 started April compared with fiscal 2007, according to Japan Cemented Carbide Tool Manufacturers’ Association. The shipment will represent the growth for 7 straight years and the new record for 6 years in a row. The shipment would keep the level as high as the second half of fiscal 2007 (Sep07-Mar08) through fiscal 2008. Especially high growth is expected for the export. The export value will represent the growth for 7 straight years and the new record for 6 years.The half-year shipment during Sep07-Mar08 was 136.3 billion yen for domestic market and 46.5 billion yen for export. The shipment is forecasted to keep the same level for domestic market while show the steady growth every half year for export through fiscal 2008.As to cutting tools, which accounts for over 70% in the total shipment, the shipment of cemented carbide inserts would increase for emerging countries including BRICs thanks to the more offshore productions by Japanese automakers. The shipment of sintered diamond and CBN (cubic boron nitride) tools will also increase. CBN tools will be used more to cut difficult-to-cut materials such as hardened steels for bearings or air plane parts.The shipment growth of wear resistant tools would be relatively small due to slower demand from molds and exports. The shipment of rock drilling tools will keep the strong increase in fiscal 2008 thanks to the active development of resources and infrastructures at overseas, though the demand stayed very low until fiscal 2006.The total export value is approaching to 100 billion yen per annum. The export ratio is forecasted at 26.2% in fiscal 2008, which was 23.4% in fiscal 2006 and 25.3% in fiscal 2007.