Japan Brass Bar Makers Adjust Output along Market Slowdown

Japanese brass bar makers are adjusting their outputs along the market decline. The makers’ new order receipts are decreasing by about 20% compared with the recent peak in July. Domestic car demand slowed down after Japanese government’s stimulus program for eco-friendly cars ceased at the end of September. Strong yen trend impacts export demand. In addition, brass bar users have entered inventory adjustment phase.

Brass bar makers’ productions had steadily increased for a half year since early 2010. The demand maintained active from house renovation market or automotive component makers. Japanese brass bar production was 14,633 tonnes in January while 16,931 tonnes in July, according to Japan Copper & Brass Association.

However, brass bar makers’ new order receipts are decreasing by about 20% compared with July at present. Brass bar makers are decreasing their productions by 10-15% along the order decline. Some makers haven’t entered output adjustment yet with order backlogs, though those who are likely to decrease the productions in or after January under current market condition.

The demand trend is unforeseeable. One maker official says the demand is even weakening for water taps. He points out this suggests the users’ inventory adjustment is effectively progressing. Brass bar demand may hit bottom after the inventory adjustment ceases early.

Meanwhile, strong yen trend is another neck for the demand recovery. Another concern is that brass bar users might minimize their procurement if electrolytic copper market price downturns.