Japan Lower Output of Copper Alloy Products through 2007

Japanese domestic production of copper alloy products decreased by 4.2% to 1 million tonnes through January-December 2007 by the quick estimation announced Japan Copper & Brass Association on 23 January. The annual output represented year-to-year down for the first time since 2005. The production decreased mainly for copper tube and brass bar.The annual output showed year-to-year decrease for 10 items among total 16 items. Brass bar production decreased by 10.8% in 2007 from 2006 while copper tube, phosphor bronze sheet and strip decreased by around 5%. Copper strip production increased by only 0.9% in 2007 from 2006 though the demand was relatively steady.Demand for copper alloy products maintained slower through 2007 than in 2006 when the demand kept firm thanks to the active economy condition in Japan. Demand has recovered gradually for semiconductors and capital expenditure relations since spring 2007 while kept slow for gas appliances, water taps and valves which are applications brass bar is much used for. Dealers of copper alloy products tried to minimize their procurement volume when copper market roughly fluctuated at the high price level. In the second half of 2007, demand for copper tube and brass bar turned worse due to the drop down of new housing starts in Japan. Japan Copper & Brass Association expects domestic production of copper alloy products would increase in 2008 compared with 2007 when the demand could recover for copper and copper alloy sheet and strip from semiconductor related industries and for copper tube applied to housing heat-pump water heater.