Japan Cu Pipe Import Hits Record in May

Japanese copper pipe import hit monthly record in May. The import increased by 61% to 1,800 tonnes in May from a year earlier, according to Ministry of Finance. The volume was around 14% of the domestic production. The buyers increased the dependence on the import due to tight domestic supply after the major earthquake. The import could keep high in and after June due to limited domestic availability.

The copper import hit former record 1,766 tonnes in April. The import increased for 7 months in a row in month to month. The import from China was 1,188 tonnes in May, which represented 66% of the total import. The import was only 9% of domestic production in May 2010.

The domestic supply was tight due to extraordinary strong air conditioner demand in last hot summer. The copper pipe makers kept high level operation in slow season but the tight supply continued. The demand increased after the earthquake mainly for rebuilding activity. A dealer source said the makers’ lead time is around 1 month longer than normal time when the makers cannot meet the strong demand.

The copper pipe makers reduced the domestic output capacity in years when air conditioner makers shifted the operation to offshore plants. A major pipe maker source said the major 4 makers’ supply capacity is just more than 12,000 tonnes per month compared with actual domestic production at 12,590 tonnes in May. The makers couldn’t increase the production.

The pipe makers reject additional order receipt when they cannot meet existing order. The tight supply could take longer time when the demand is expected to be strong due to hot summer.

Japanese brass flat products import hit monthly record in May. The volume increased by 37% to 2,172 tonnes in May from April. The former record was 1,790 tonnes in March 2010. The products from South Korea represented 87% when the users apparently increased the import under limited domestic supply.