Japan: Copper production in H1FY23 falls 15%, strong demand in semiconductor-related applications

In the first half of this year (January to June), the Japan Copper Rolling Association reported that the production of copper products was 325,983 tonnes (t), which is 15.2% lower than the same period last year. The demand for these products, except for those used in automotive semiconductors, has been slow. This decline was partly due to the fact that production plants were almost fully utilised during the same period last year, leading to a significant drop in output.

In certain sectors, parts inventories are depleting, but the copper and copper wrought industry has not yet experienced the full effects of demand recovery, according to the association. The industry is closely watching how much it will bounce back in the second half of the year.

The production of the largest variety of copper strips decreased by 15.7% to 117,993 t. While sales for automotive applications in the semiconductor-related business remained strong, other fields saw slow sales. Additionally, sales for automotive and consumer connectors also declined.

Sales of brass strips declined by 22.2% to 38,173 t. The automobile-related sales were sluggish, and there was no usage in consumer connectors both domestically and internationally. While smartphone sales were slow overall, some regions showed signs of recovery, and the production of new models has commenced.

Bronze strip sales dropped by 34.5% to 9,102 t. Smartphone sales remained generally low, but some areas indicated signs of improvement. Digital home appliances and white goods sales were also weak. Large-scale equipment maintenance at certain companies had an impact on the sales. On the other hand, materials for electric vehicles performed well.

The production of copper tubes decreased by 6.7% to 44,312 t. Both household and commercial use of air conditioning equipment were affected by installation delays, leading to sluggish sales. Production is ongoing, but the market's outlook is not promising, with poor sales and uncertainties surrounding EcoCute-related products, which were previously driving demand.

As for brass rods, production declined by 13.5% to 76,207 t. Products related to housing equipment, including gas appliances and faucets, faced challenges due to slow-moving parts inventories.

This article has been published under an exchange agreement between Japan Metal Daily and SteelMint.