Japan Brass Bar Output Returns to 16,000t Level after December

Japanese brass bar makers’ productions are increasing. The makers’ order receipts decreased for October-November after Japanese economic incentive packages were ceased or shrunk. However, brass bar outputs of major makers rebounded in December. Brass bar users seem to have minimized the purchasing volume with a concern on weak economy trend. The order adjustment is now relieved. Japanese brass bar production is expected to keep around 16,000 tonnes per month for January-March, according to several sources.

Domestic brass bar production was 15,844 tonnes in November, according to Japan Copper & Brass Association. The production increased by 4% from a year earlier. However, the production represented below 16,000 tonnes for 2 months in a row. The volume was 6.4% lower than the recent peak of 16,931 tonnes in July 2010.

Brass bar makers were concerned about weak demand trend after December. However, the actual production seems to have rebounded at the major makers including San-Etsu Metals, KITZ Metal Works, Ohki Brass & Copper and Nippon Shindo. An official of the one maker said the domestic total output was likely to reach 16,000-tonne level in December.

The main reason is that brass bar users relieved their inventory adjustment. The governmental incentive for eco-friendly car purchase was cut at the end of September. At the same time, strong yen trend impacted Japanese domestic economy. Brass bar makers stopped speculative orders in October and November. Meanwhile, brass bar orders kept relatively firm from water tap makers related to house renovations. The users’ order volume is recovering recently.