Japan Brass Bar Production Below 10,000 t/m in March

Japanese domestic brass bar production seemed to total slightly below 10,000 tonnes per month in March, according to a concerned source. The production was likely to decrease by around 8% compared with 10,781 tonnes in February and drop by around 49% from a year earlier. Brass bar consumers and wholesalers still continue inventory adjustment. Brass bar production may keep low or decrease more in April.

Domestic brass bar output represented 2-digit year-on-year shrinkage for 7 straight months since September 2008. Japanese brass bar makers with output capacity at above 2,000 tonnes per month reduced their production by 40-50% compared with the average volume during April-September 2008. Brass bar consumers and wholesalers didn’t increase their stocks for the beginning of a new fiscal year in April despite of makers’ expectation.

One maker considers order receipt may decrease by more than 100 tonnes per month in April and plans a record number of temporary closing days this month. On the other hand, another maker expects order receipt could recover by 50-100 tonnes in April. Output conditions are currently different at each maker. Makers’ output reductions are slowing down but the demand is unlikely to hit the bottom yet.