Japan Cemented Carbide Tool Shipment to Rise by 3% in F2007

Japanese cemented carbide tool shipment will increase by 3% to 343.8 billion yen in fiscal 2007 started April from fiscal 2006, which represents increases for 6 years in a row and new record for 5 years in a row, according to the estimated for 43 member companies by Japan Cemented Carbide Tool Manufacturers’ Association. The domestic shipment increases by 1.6% to 260 billion yen while the export increases by 7.4% to 83.8 billion yen. The export increases for 6 years in a row and renews the record for 5 years in a row. The shipment increases to 169 billion yen the first half of fiscal 2007, which is 2.4% higher than same period of fiscal 2006 and by 0.1% from second half of fiscal 2006. The shipment reaches 174.8 billion yen in second half of fiscal 2007 due to higher capital expenditure by automakers and other domestic firms, which is 3.6% higher than same period of fiscal 2006 and 3.4% higher the first half. The export rate of the shipment will increase to 24.4% in fiscal 2007 from 23.4% in fiscal 2006. The export to Asia represented 60% of total export. The export to Asia is expected to keep increasing due to industrialization in the area. The total shipment growth slowed down in fiscal 2006 compared with past 4 years. The actual growth rate was 3.8% in fiscal 2006 without increased members’ number from fiscal 2005.