Japan Copper Alloy Products Output to Turn Y/Y Minus in June

Japan Copper & Brass Association announced on Tuesday Japanese copper and copper alloy fabricators’ production in June was quickly estimated at 73,170 tonnes, which decreased by 4.2% from a year earlier. The production would turn to year-to-year minus after 2 months. Copper strip and brass strip productions significantly decreased along weak demand in Japan and at overseas. Meanwhile, brass bar and copper tube productions kept high level and year-to-year plus for more than a year.

The total production would keep approximately 73,000 tonnes for 4 months in a row while decrease by 3,204 tonnes from a year earlier. Copper strip production was estimated to decrease by 2,853 tonnes and brass strip production would decrease by 1,209 tonnes.

Copper strip production seemed to decrease due to weak demand for leadframes in Japan and at overseas. The demand was also low for automotive semiconductors and connector pins. Brass strip production also decreased due to operation down in car industry. Especially brass strip export was estimated to drop by 38% from a year earlier. Strong yen trend also seemed to impact the export.

Japanese import of copper and copper alloy fabricated products increased by 54% to 6,251 tonnes in May from a year earlier and hit the record high volume for 2 months in a row. Brass strip and copper tube imports expanded by more than 50%. The import from South Korea accounted for 49% in the total import volume while China represented 30%.

The import exceeded the previous record 5,260 tonnes in April. Brass bar import increased by 54% to 2,203 tonnes in May from a year earlier. Copper tube import increased by 61% to 1,800 tonnes. An officer of Japan Copper & Brass Association analyzed domestic dealers seemed to implement alternate orders for overseas suppliers just after Japan Earthquake and the products were delivered in April and May. Copper tube import increased mainly for non-grooved products when copper tube supply is shortening in domestic market.