Japan Rolled Copper Output Hits 34-Year Low

Japanese rolled copper production hit 34 years low in 2009. The production decreased by 30.7% to 654,470 tonnes in 2009 from 2008, which was the lowest level since 523,000 tonnes in 1975, announced by Japan Copper and Brass Association on Friday. The production decreased from 2008 for all major items including copper strip, brass bar and copper tube. The production was impacted by major production cut by automobile and semiconductor in January-March 2009.

The 30.7% year to year drop in 2009 was the largest decrease in the history. The production decreased for all 16 items including others. The copper strip output decreased by 30.1% to 181,283 tonnes. The production decreased by 74.9% to 5,945 tonnes in March 2009 from a year earlier when users of automakers, semiconductor makers and appliances makers reduced the output sharply. The copper products’ output in November and December was higher than a year earlier level when the users increased the production level along with the progress of the inventory adjustment. However, the major copper products production cut in earlier 2009 reduced the annual production.

The brass bar output decreased by 20% to 151,710 tonnes in 2009 from 2008. The demand recovered for automobile and appliances in second half of 2009 while the demand was still slow for water tapping, gas equipments and other building materials.

The copper tube output decreased by 26.7% to 113,879 tonnes in 2009 from 2008. The production was impacted by slow air conditioner demand and higher air conditioner import from Japanese offshore production sites.

The output of phosphor bronze strip and flat products decreased by 34.6% to 33,332 tonnes in 2009 from 2008. The production decreased sharply in early 2009 as copper strip. The phosphor bronze products’ output decreased annually while the output recovered since April due to higher digital appliances and cell phone demand in China and Asia.