Japan Cu Alloy Fabricators’ Actual Capacity Drops to 75,900t/m

Japanese copper alloy fabricators’ actual capacity is estimated at 75,900 tonnes per month as of March 2009, lower by 20.9% compared with a year earlier, according to the survey by Japan Copper & Brass Association. The actual capacity is defined as productive ability with the real-time employee number. Japanese copper alloy fabricators, especially sheet and strip makers, let their employees off or downsized workforces along the demand decline since autumn 2008.

Japan Copper & Brass Association carried out a capacity survey among domestic 54 fabricators. The actual capacity as of March 2009 was lower by 20,000 tonnes than 95,900 tonnes in March 2008 and hit the lowest level in late 10 years. The association explained there has never been such a rapid capacity drop in a year.

Japanese copper alloy fabricators entered output reductions in autumn 2008 due to the demand shrinkage from automobile and semiconductor industries. Sheet and strip makers are especially damaged by the downturn of these two industries. Some copper fabricators let the employees off for a certain period. Some fabricators laid off workers in affiliate companies.

Domestic output of copper alloy fabricated products totaled 34,512 tonnes in March 2009. The fabricators’ operation rate was 45% despite of low actual capacity. The operation rate against the actual capacity has stayed around 80-95% in late 10 years and was 90% as of March 2008. Operation rate significantly declined in March 2009.