Japan: Mitsui revises copper foil sales forecast downward, anticipates decrease in profit

Mitsui Kinzoku has lowered its sales outlook for electrolytic copper foil this fiscal year. Sales of the ultra-thin Microcin product will drop by 3%, and monthly sales of other items will decrease by 12% to 1,610 tonnes (t). This is due to slower recovery in the telecommunications market in the second half. The company anticipates a 0.4 billion yen decrease in operating profits. However, compared to last year's weak performance, both sales and profits are expected to improve. The first quarter saw better-than-expected sales of Microcin for IC package boards and high-density packaging boards. Strong sales are predicted to continue in the second quarter, driven by demand for smartphones produced in North America. As a result, the company has raised its full-year sales projection.

However, sales for PKG are predicted to encompass temporary demand for restocking by users in the initial quarter. Sales in the following quarter are projected to be lower than initially anticipated, mainly due to actual demand. While there is an expected recovery in demand during the 3rd and 4th quarters, sales will still decline by around 10%. This is attributed to the company's belief that significant recovery will occur after the new year begins. Consequently, despite a minor dip in overall Microcin sales compared to expectations, there will be a substantial 26% increase from the previous year, which faced challenges in the telecommunications market.

The sales quantity for different electrolytic copper foils has been adjusted. It is anticipated to be 1,350 t per month in the first half of the fiscal year, a 13% reduction from the May prediction. In the second half, it is expected to reach 1,880 t per month, reflecting a 10% decrease. This adjustment is due to a slower market recovery than initially anticipated. While the full-year sales volume is predicted to be lower than the May forecast, it is anticipated to rise by 18% compared to the previous year.

Moreover, there is a potential for increased demand for AI servers using VSP, an electrolytic copper foil designed for high-frequency substrates. This situation leaves room for growth.

Regarding profits, the first half is projected to be 300 million yen higher than what was indicated in May. This is attributed to factors like lower-than-anticipated energy expenses and a rise in the price of microcin in April.

For the entire year, there is an anticipated 400 million yen reduction in volumes. When compared to the previous year, although there was a 4.8 billion yen sales decrease in the first half due to reduced sales, there is an expected 3.3 billion yen increase in sales for the entire year.

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