Japanese Brass Bar Makers Prepare Billet Inventory for Electricity Cut in Summer

Japanese major brass bar makers, San-Etsu Metal and Ohki Brass & Copper, have completed billet inventory preparation before electric power regulation scheduled for July-September. Brass makers are in full production to meet the continuously firm demand related to house renovation since 2010 as well as brass bar consumption for restoration in disaster areas of Japan Earthquake. Brass bar makers plan to keep the operating rate of downstream processes with billet inventory and maintain high production level this summer.

Japanese government decided to oblige 15% cut of electric power consumption at all electricity users in TEPCO’s service area for July-September. Brass bar makers in the area are now increasing inventories of finished products or intermediate products, such as billet, since most makers would be forced operation down of melting and casting processes for 15% power saving.

San-Etsu Metal increased billet inventory at Shin Nitto plant in Ibaraki Prefecture and Tonami plant in Toyama Prefecture by 1,500-1,600 tonnes against the normal level until the end of April. This billet volume equals to approximately 1,000 tonnes of finished products, 15-20% of San-Etsu Metal’s recent monthly brass bar output.

Ohki Brass & Copper increases billet inventory at Niiza plant in Saitama Prefecture every year in advance of regular maintenance and long holidays scheduled in summer. This year, Ohki Brass & Copper increased billet inventory more, up by about 30% compared with usual years. The firm completed the inventory preparation in April.

Japanese brass bar production was around 17,000 tonnes per month in March and April, according to Japan Copper & Brass Association. The output represented higher than 15,905 tonnes of monthly average for January-December 2010. The demand maintains steady.