Mitsui Mining & Smelting expects its production of copper alloy fabricated products would recover to average 3,000 tonnes per month in the second half of fiscal 2009 (Oct09-Mar10), up by 23% from the corresponding period of fiscal 2008. The output temporarily dropped to 1,200-1,300 tonnes per month under slow economy but turned upward in May and recovered to 3,100 tonnes in July thanks to the demand return mainly from automobiles and progress of distributors’ inventory adjustment. The firm aims to keep the output level at 3,200-3,400 tonnes per month in fiscal 2010.
Ageo plant, Saitama, Japan, seemed in almost full operation in the first half of fiscal 2008 against the output capacity at approximately 4,000 tonnes per month expect for zinc products and bare strip for outside customers. The demand deteriorated in the second half of fiscal 2008 along global economy slowdown and distributors’ inventory minimization. Ageo plant’s production plunged to 1,200-1,300 tonnes in February-March, down by 70% from the first half of fiscal 2008. The averaged output decreased by 40% to 2,430 tonnes per month through the second half of fiscal 2008, which was 3,127 tonnes through a full year of fiscal 2008. The demand turned upward in May from connector pins applied into automobiles and electric appliances. Additionally, market dealers restarted to increase inventories to the moderate level. Mitsui Mining & Smelting gradually increased output of brass and copper based products. The production in July was likely to recover 70% level as high as in the first half of fiscal 2008. The firm can approach the breakeven point when the output exceeds average 3,000 tonnes per month.Japan Steel Scrap Composite Prices (Sangyo Press)
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