Japan Copper Alloy Product Output Hits 32-Year Lowest in F2009

Japanese copper and copper alloy fabricators’ annual production is quickly estimated at 754,014 tonnes for fiscal 2009 ended in March 2010, down by 6.6% from fiscal 2008, announced by Japan Copper & Brass Association on Tuesday. The production decreases for 3 straight years and hits the lowest since fiscal 1977. In fiscal 2010, the production is expected to rebound to around 850,000 tonnes thanks to the demand recovery mainly for exporting strip products.

The annual production represents below 800,000 tonnes for the first time since 727,670 tonnes in fiscal 1977. The quarterly output dropped by 40.1% to 152,125 tonnes for April-June 2009 from the same period of 2008. The production rebounded to 206,339 tonnes for October-December 2009, almost as much as 206,263 tonnes for October-December 2008, and increased by 87.6% to 212,088 tonnes for January-March 2010 from the same period of 2009. However, the volume recovery couldn’t cover the wide drop in April-June 2009.

Brass bar production decreases by 12.4% to 165,337 tonnes in fiscal 2009 from fiscal 2008, which hits the lowest since 158,322 tonnes in fiscal 1975. The demand rebounded from automobile and electric appliance industries in the second half year while maintained stagnant from construction related applications such as water taps, gas appliances and valves. Copper tube output decreases by 16.3% to 118,327 tonnes due to inactive demand from air conditioner makers.

Copper and copper alloy strip production was relatively steady. Copper strip increases by 6.6% to 226,077 tonnes in fiscal 2009 from fiscal 2008 while brass strip increases by 0.3% to 99,027 tonnes and phosphor bronze strip increases by 6.7% to 42,195 tonnes. Japanese strip makers kept full operations in the second half year to meet strong export demand mainly for Asia.