Japan Cemented Carbide Tool Shipment Shows Sign to Hit Bottom

Japanese domestic shipment of cemented carbide tools decreased by 61.7% to 11.8 billion yen in April from a year earlier, according to Japan Cemented Carbide Tool Manufacturers’ Association. The shipment value represented year-to-year decrease for 9 straight months and hit a record low for 4 straight months. On the other hand, cemented carbide alloy production and insert chip shipment volume rebounded in April from March. The demand may have hit the bottom.

Cemented carbide tools are mainly consumed to manufacture automotive parts, airplane parts and molds. The demand turned very weak along global economy deterioration, which occurred in autumn 2008. Japanese domestic shipment of cemented carbide tools is less than half from the historically peak of a year earlier, due to the decrease of cutting tools, sintered diamond and CBN (cubic boron nitride) tools those which are used to manufacture automotive parts.

However, in April, domestic production of cemented carbide alloy, the material for tools, rebounded from 163 tonnes of March. The production had marked the historical bottom for 3 straight months until March. Domestic production and shipment of insert chips, the main item among cutting tools, also represented month-to-month increase in April. The production increased by 26.0% to 8.93 million chips and the shipment increased by 6.7% to 9.92 million chips in April from March.

The demand seems to hit the bottom despite of the half level from the peak thanks to slight output recovery at car makers and electric appliance makers.