Ohki Brass & Copper Estimates Higher Brass Bar Output for Jul-Dec

Japanese major brass bar maker, Ohki Brass & Copper plans its full-year brass bar production at 34,000 tonnes for 2011. The production would increase slightly from the previous year. The actual average output was 2,700-2,800 tonnes per month for January-June, slightly increasing from the same period of 2010. The monthly output is expected to exceed 2,800 tonnes for July-December. The company’s full-year net sales could exceed the planned level at 20 billion yen unless copper market price largely declines.

Ohki Brass & Copper initially planned brass bar production at average 2,650-2,700 tonnes per month for January-June. The actual production was higher than the plan. The monthly output approached 3,000 tonnes for May-June and maintained the level in July. The volume temporarily downed by around 20% in August due to facility maintenance and summer holidays. In September, the production is expected to upturn again to around 2,900 tonnes.

Brass bar consumption keeps steady for water taps and gas appliances in Japan since the second half year of 2010. The demand related to car industry declined after Japan Earthquake in March. On the other hand, brass bar users and wholesalers increased speculative orders with a concern on supply shortage. Thus the demand increased as total.

Brass bar consumption is expected to increase largely in car industry in and after October. Ohki Brass & Copper estimates its brass bar production could exceed average 2,800 tonnes per month for July-December. The full-year production is likely to exceed 33,000 tonnes in 2010.