Japanese cemented carbide tools shipment totaled 22.8 billion yen in May, which represented year-to-year plus by 7.5% and month-to-month minus by 0.3%, according to Japan Cemented Carbide Tool Manufacturers’ Association. The shipment kept y/y plus while the plus range represented only one digit for 2 months in a row. The demand was impacted by output suspension of automobile industry after Japan Earthquake. Meanwhile, the shipment seemed to decrease as a rebound of sharp increase in March.
About 40% of the domestic cemented carbide tool shipment value is for transporting machine industry such for automobiles, airplanes and vessels. The demand especially depends on automobile industry. Automotive component makers were forced to suspend or lower their operations after Japan Earthquake. Thus the demand for cutting and other tools declined. On the other hand, the association analyzes tool users seemed to increase speculative procurement in March when some of tool makers announced price hike effective for April to cover cost upsurge of tungsten. As a result, the total shipment value exceeded 26 billion yen in March and hit the highest since October 2008.Japan Steel Scrap Composite Prices (Sangyo Press)
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