Japan: Demand for copper to be up marginal 2.4% in 2022

Demand for copper products in 2022 will amount to 0.79 million tonnes (mnt) an increase of 2.4% compared to the previous year, as per the Japan Copper and Brass Association.
All 14 varieties are expected to increase due to the rise in global demand for semi-conductors, remote work-related equipment, etc, a recovery in automobile production, and recovery of construction as well as in construction-related demand.

The demand volume of copper strips has reached a record high for the first time in three years, and it is expected that demand for copper pipes will reach the 100,000 t mark for the first time in 3 years.

By type, copper strips demand was at 287,400 t, an increase of 1.2% y-o-y. For semiconductors, demand for in-vehicle use is expected to recover due to the elimination of material shortages, and with the spread of 5G, demand for communication infrastructure such as communication terminals and data centers is expected to increase, and growth is expected. Inquiries about in-vehicle connectors will increase due to the recovery in production and electrification of automobiles. Consumer connectors will also remain firm due to higher communication speeds and remote demand.

Copper pipes demand was at 100,200 t, up 6.4% y-o-y. Room air conditioners are supported by growing demand in cold regions and steady replacement demand. For packaged air conditioners, sales for stores will recover due to the recovery of economic activity. Demand for gas appliances, which is strong in overseas markets, is expected to increase further if the difficulty in obtaining parts is resolved.

Brass strips demand was at 102,100 t, up 1.6% y-o-y. Sales for automobile and consumer connectors are strong, and sales for key materials are steady with the keyless transition.

Brass rods were at 182,100 t, up 1.5% y-o-y, keeping good performance in the gas equipment and water heater fields. The area of faucet fittings is increasing due to the elimination of difficulty in obtaining parts. Due to the recovery in economic activity, the number of valves for equipment will be expanded. New demand is expected to come in for hydrogen-related valves and for communication infrastructure such as remote work.

Bronze strips demand was at 32,000 t, up 6.3% y-o-y. Sales for connectors will be strong due to an increase in smartphone production. 5G-related infrastructure, digital home appliances, and in-vehicle related products will also increase.

By product type, copper strips are expected to be the largest amount ever, and overall sales are strong. Demand for semiconductors has been strong due to demand for remote work and speeding up of communication equipment, and recovery in production of automobiles has been successful. In the second half of the year, the production of copper pipes was reduced due to a shortage of semiconductors and parts from Southeast Asia, but the production of packaged air conditioners is recovering due to the recovery of construction and construction demand. Inquiries about brass rods for gas appliances and faucet fittings are strong due to the expansion of demand for remodeling, and the recovery for industrial and machine tools is continuing.

Outlook

The demand outlook is based on the production results of member companies and economic reports of think tanks, and the effects of the situation in Ukraine. The impact of the resurgence in Covid infections in 2022 is expected to be small on copper demand.

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