Japan Copper Strip Production in Slowdown Trend for Oct-Dec

Japanese copper and copper alloy strip production is slowing down though which kept steady recovery since April 2009. The domestic production totaled 22,060 tonnes in September, according to Japan Copper & Brass Association. The production increased by 7.7% from a year earlier and maintained above 20,000 tonnes for 13 straight months. Meanwhile, the range of increase represented the narrowest since January 2010. Several fabricators point out the demand is weakening from semiconductor and automobile industries.

Mitsubishi Shindoh’s Wakamatsu plant in Fukushima, Japan estimates its production would decrease by 5-10% in November-December compared with January-June. Wakamatsu plant mainly produces copper alloy strips applied to leadframes, automotive connectors and relays.

Electronic material industry entered adjustment phase in and after September. Wakamatsu plant seems to have finished most of order backlogs at present. The plant’s output is estimated at average 5,000 tonnes per month for January-June. In November and December, the output is expected to decrease by 10% to around 4,500 tonnes per month.

Japanese copper strip production sharply decreased in and after November 2008 and hit as low as 5,945 tonnes in March 2009. The production turned to gradual recovery after that and exceeded the pre-shock peak level in August 2010 at quickly estimated 20,300 tonnes.

In September, market inventory of personal computers and flat televisions increased those which consume semiconductors. At the same time, strong yen trend impacts Japanese exports. Automotive market is also weakening due to the end of Japanese governmental stimulus policy for eco friendly cars.