Japan Copper Tube Output Down by 4% Y/Y in 1H

The half-year output plans by Japanese 4 major copper tube makers totaled 84,220 tonnes for April-September 2008, down by 4% compared with the corresponding period of 2007. Demand for copper tubes has declined since fiscal 2007 (Apr07-Mar08) due to the stagnancy in the domestic construction market and the upsurge of copper price. The 4 makers expected the weak demand continues during the first half of fiscal 2008.The makers set the year-on-year decreasing output plans for 1H of F2008 other than Sumitomo Light Metal Industries. Sumitomo Light Metal’s output is estimated to increase by only 1% year-on-year. Kazuhiko Masuda, president of Sumitomo Light Metal, said the demand would maintain stagnant for capacitors and building copper tubes during 1H of F2008 even though the output of ripple fin tubes would increase which are used for air conditioners.Kobelco & Materials Copper Tube set the output plan at 28,200 tonnes for Apr-Sep, down by 2% year-on-year. The production of copper tubes for the domestic market would keep almost flat from a year earlier. The firm plans to decrease the normal tube output for export in order to adjust the inventory at Malaysian fabricating site. Furukawa Electric and Hitachi Cable weaved the weak demand from residential air conditioners.A maker source said the monthly output volume by Japanese copper tube makers seemed lower by 20-30% year-on-year in May, when the demand hits the yearly peak from air conditioners in usual years.Domestic demand for copper tubes dropped down due to the confusion after the start of Japanese new building standard law in June 2007. The output and shipment declined for refrigerant tubes applied into air conditioners and construction tubes such as cold- and hot-water supply pipes. High copper price also impacted the demand. The users shifted to cheaper materials such as aluminium.