Japan Cu Alloy Product Output Recovers to 440,000T in 1H2010

Japanese copper and copper alloy fabricators’ production totaled 435,465 tonnes for January-June 2010, increasing by 64.2% from the same period of 2009, announced by Japan Copper & Brass Association on Wednesday. The production significantly recovered from serious output slowdown in January-June 2009. The demand has recovered from semiconductors, cars and exports to China and Southeast Asia. Meanwhile, the demand maintained stagnant from domestic construction market. As a result, the half-year total production couldn’t reach the level as high as before global economy deterioration.

Copper strip production increased by 2.2 times to 131,885 tonnes for January-June 2010 from the same period of 2009, those which are used for connector pins and leadframes applied to cars and electric appliances. The monthly output kept above 20,000 tonnes and hit the yearly highest in June.

Brass bar production increased by 41.9% to 95,080 tonnes. In March, the monthly output exceeded 16,000 tonnes for the first time since September 2008. The demand partially recovered for cars and electric appliances. Some sources suggest brass bar demand is also recovering for water taps thanks to Japanese government’s eco-point system for residents.

Copper tube production increased by 13.8% to 66,765 tonnes, mainly used for air conditioners. The monthly output reached 10,000 tonnes in February, the highest in 7 months, and exceeded 12,000 tonnes in May, for the first time in 18 months.

The total half-year production represented year-to-year increase for the first time in late 4 years as January-June. The main reason is that the production was 34-year lowest at 265,133 tonnes in January-June 2009. The latest half-year production couldn’t reach 504,085 tonnes in January-June 2008, before Lehman Brothers’ collapse.