Japan Rolled Copper Makers Reduce Output in July-September

Japanese rolled copper makers started to output reduction for better supply balance. Brass bar makers see the capacity utilization is around 70% in July-September while sheet and strip makers operate at 80-90% of the capacity. The output reduction is expected to get wider due to slower demand though they usually reduce the output in summer seasonally. The wider output reduction could impact on copper scrap dealers’ market along with their profitability. Tokyo based major brass bar maker, Ohki Brass & Copper Co. plans the monthly output is around 2,500 tonnes in July-September, which is around 500 tonnes lower than April-June. The capacity utilization is around 70% compared with around 75% in April-June. Other brass bar makers around Tokyo also plan output reduction. Copper sheet and strip makers around Tokyo operate at 80-90% of the capacity while they operated at full capacity in same period of 2006. Copper tube makers also reduce the operation in July-September to less than same period of 2006. Rolled copper makers reduce the operation in July and August due to summer holiday compared with other months. However, they reduce the output more than usual summer under slower demand for automobile, building, machinery and electronics along with inventory adjustment by users.