Slow Japan Electrolytic Copper Foil Demand

Japanese electrolytic copper demand gets slower. The demand has decreased for commodity grade foil printed circuit board and battery foil for electronics since late 2011 due to slow domestic demand and impact from Thai flood. The demand also slows for automotive battery. The demand shows no sign to recover for domestic market.

The commodity foil demand is slower since summer 2011 due to slow demand for personal computer and liquid crystal television. After Thai flood, the demand decreased for automobile and appliances. The foil makers reported their production decreased to 50-60% level in October-December from same period of 2010. A foil maker sees the demand already hit bottom. However, the domestic demand is still slow and could be the slow level through March. A foil maker sees Taiwanese demand started to improve after the inventory adjustment.

Furukawa Electric expects the copper foil sales will decrease in January-March from October-December. The sales decrease for 3 quarters in a row. The lower sales are apparently due to slow demand for high performance foil for battery along with slow demand for commodity grade.

The foil demand surged for lithium ion battery in 2011 while the battery demand decreased for electronics since summer 2011. An industry source said the demand in December decreased to 60-70% level of the peak. The demand for automotive battery also slows down after Thai flood.

Higher yen rate also impacted on the foil demand when domestic battery makers suffer from the exchange rate. An industry source said Japanese battery makers lose market share through competition with South Korean maker.