Japan Copper Product Output Data Hints at Recovery

TOKYO, Sept. 25 -- Japan's output of rolled copper products rose 2.2 percent in August from July, preliminary data showed on Friday, in a sign of recovering metals demand as the country's economy appears to be on the mend.

    Japan's demand for copper began to plunge from late last year as major manufacturers cut output in a sharp economic downturn.

    Now appetite is sharpening in the automobile and semiconductor sectors, but the August figure remains low on an annual basis.

    August's seasonally adjusted figure fell 21 percent on the year, to 63,224 tonnes, the Japan Copper and Brass Association said.

    Japan's economic activity traditionally slows in August for the country's summer break.

    The association also said it expects demand for the year to March 2010 to total 713,930 tonnes -- the lowest since the year ended March 1976. That represents an 11.5 percent decrease from the year ended in March 2009.

    Demand recovery in copper, which has several applications from air conditioners to computer chips, has been led by the semiconductor sector, with demand from the automobile sector, another large user, also improving.

    Japanese industry officials say consumption of copper has returned to about 70 to 80 percent of its levels in 2008.

    The Japanese Electric Wire and Cable Makers' Association last week estimated that annual demand for copper wire and cable shipments for the fiscal year through March 2010 was likely to be the lowest since 1971/72.

    (Source: Reuters)