Japan Copper Alloy Product Growth Slows Down in January

Monthly output of copper and copper alloy products in Japan increased by 3.2% to 82,660 tonnes in January from a year ago, announced by Japan Copper and Brass Association on Wednesday. The output increased on year-to-year comparison for 13 months in a row, while the growth rate slowed down in January. Brass bar production represented year-to-year decrease for the first time in 14 months. Production increased slightly for copper strip, phosphor bronze sheet and strip.Year-to-year growth rate in January 2007 was secondly lowest in late 13 months, next to 2.2% in January 2006. Output growth of copper and copper alloy products has slowed down since November 2006 despite of less operating days at Japanese copper fabricators in January.Declining copper price seemed to impact the output volume. Domestic copper ingot price weakened sharply to less than 800,000 yen per tonne in January, which is the indicator for copper and copper alloy fabricated products. Copper product users reduced their purchasing volume as much as immediate needs and their order volume for copper fabricators decreased. Output growth slowed down consequently even though copper product makers held order backlogs.Brass bar production has become to below 20,000 tonnes per month for the first time since August 2006, demand of which declined for industrial machines due to slower capital expenditure by domestic manufacturing industries. As to copper strip, phosphor bronze sheet and strip, the main demand fields such as semiconductors, digital appliances and cellular phones have entered adjustment phases.