Japan Electrolytic Copper Foil Makers Reduce Operation Rate

Japanese electrolytic copper foil makers show sign to decrease copper scrap and raw materials purchase. The electrolytic copper foil makers reduced the purchase volume and price for the raw materials in October-December when the foil demand peaks after recovery since spring. Some foil makers reduce the purchase volume more in November. The raw materials industry concerns the foil makers’ purchase volume could keep low level in January-March. The suppliers of copper nugget and scrap try to increase the supply for copper flat and strip makers.

The electrolytic copper foil makers purchase no.1 copper wire and copper nugget to make the foil. The foil makers increased the production since April and production was peak in September to ship for digital equipment toward Christmas season. The foil makers, however, reduced the raw materials purchase in September and October when the demand was peaking.

The major foil makers around Tokyo reduced no.1 copper wire purchase in November. A dealer source said the scrap shipment in August to October was around 80% of the peak in 2008 but the buyers halved the purchase in November. Another scrap dealer said the quarterly contract buyers’ purchase volume is stable but spot sales volume decreases in November. The dealers see lower foil demand in China and Taiwan impacts on the foil makers’ activity.

The foil makers’ raw materials purchase price is higher than other rolled copper makers due to higher quality. However, a dealer said some foil makers reduced the purchase price to same level as other rolled copper makers since September.