Mitsui Sumitomo Metal Mining Brass & Copper Plans 5,450T/M Output in 2HF2010

Mitsui Sumitomo Metal Mining Brass & Copper, which is Japanese major copper alloy fabricator jointly operated by Mitsui Mining & Smelting and Sumitomo Metal Mining, plans its production at average 5,450 tonnes per month for the second half of fiscal 2010 ending in March 2011, almost as much as in the first half year. The demand condition maintains steady and the firm holds order backlogs at present. Meanwhile, the firm cautiously watches automobile market which is concerned to enter adjustment phase in January-March 2010.

Mitsui Sumitomo Metal Mining Brass & Copper plans average output at 3,600 tonnes per month in Saitama, Japan and 1,850 tonnes per month in Mie, Japan for October-March. The actual production in the first half year was approximately 5,400 tonnes, consisted of 3,600 tonnes in Saitama and 1,800 tonnes in Mie.

The firm considers demand for copper alloy products keeps current level from automobile industry. Automotive applications account for 45% in the firm’s total output. Japanese automakers will decrease their output by about 20% after the end of Japanese government’s stimulus program for eco friendly cars until September. Meanwhile, automotive component makers of the firm’s customers are expected to decrease the outputs by only 5-10%.

At the same time, Mitsui Sumitomo Metal Mining Brass & Copper holds order backlogs at several hundred tonnes or for next 3 months as of the end of September.

The firm’s operation may be impacted by automotive market condition if car sales worsen during October-December and the market enters adjustment phase in January-March. The firm tries to sustain the operation by increasing order receipts related to consumer electronics.