Japan Copper and Brass Association announced on Friday monthly brass bar production in Japan decreased by 14% to 13,294 tonnes in December from a year earlier. The volume hits the lowest volume since August 2009. The actual demand seemed to deteriorate toward the yearend though the orders had declined in recent months due to overstock in the market and sharp price down in 3Q 2011.
Japanese brass bar production had kept around 17,000 tonnes per month until July. Brass bar users and distributors had expected for the demand increase along reconstructions in the disaster areas of the Japan Earthquake. However, the actual demand didn’t increase and the market inventory became surplus. The brass bar production decreased below 16,000 tonnes in August and below 15,000 tonnes in October. The volume down continued and hit the lowest since mid 2009 when the demand recovery had gradually progressed since Lehman’s Shock.Japan Steel Scrap Composite Prices (Sangyo Press)
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