Japan Copper Alloy Products Demand Concerned Weak for Jan-Mar

Copper alloy product dealers around Tokyo are concerned on weak demand trend for January-March. Actual demand turned weak in December while electrolytic copper market price, the indicator for copper alloy products, kept strong. Too high copper price may cause order volume minimization by the users.

One major dealer of coppe, brass sheet and strip around Tokyo said the reselling volume turned downward in December. Another dealer of brass bar said the reselling volume decreased by about 10% in December from the average for September-November. The brass bar dealer forecasts the demand wouldn’t upturn before March.

Many dealers pointed out their shipment volume decreased in or after October. One factor is that Japanese government’s subsidy program for eco friendly car ceased at the end of September. Additionally the incentive for home appliances was narrowed in December.

Meanwhile, electrolytic copper market price is strongly surging. Electrolytic copper ingot selling price by JX Nippon Mining & Metals, the domestic market indicator, rose by 80,000 yen per tonne (about 11%) in a month of December. The steep upsurge causes market players’ concerns on the price downturn. One dealer source said copper alloy product users are decreasing their order lots.

Copper alloy fabricators’ productions may be impacted if the wholesalers’ reselling volume declines. Japanese copper and copper alloy fabricators’ output volume kept year-on-year increase for 13 straight months by November, according to Japan Copper & Brass Association. However, the dealers are currently minimizing order volume against the makers due to concerns on the copper market price downturn.