Changjiang Nonferrous Metals Network News: According to foreign media reports, Reuters has calculated that although demand has recovered from the downturn during the pandemic, Japan's refined copper production in the first half of the 2021/22 fiscal year will decrease by 1.9% year-on-year, according to plans from Japanese smelters.
The market is concerned that the recent fire at a semiconductor factory in Japan will exacerbate global chip shortages and force automakers to reduce production.
Japan's largest copper supplier, Pan Pacific Copper (PPC), plans to slightly increase production, but most other suppliers, including second ranked Sumitomo Metal Mining (SMM) and third ranked Mitsubishi Materials, plan to reduce production from April to September.
Sumitomo Metal is planning to maintain its Toyo factory, but due to issues with the oxygen supply system of external companies, the operation of Mitsubishi Materials' Onahama factory has slowed down.
A spokesperson for Pan Pacific Copper stated that PPC, jointly owned by JX Nippon Mining&Metals and Mitsui Mining and Smelting, expects domestic demand for forged copper products to improve this year compared to last year due to increased production from automotive and semiconductor manufacturers.
The Japan Copper and Brass Association stated this week that it expects demand for forged copper products in Japan to increase by 13.4% in 2021/22, compared to a decrease of 11.7% in the same period last year.
A spokesperson for Pan Pacific Copper said, "However, overall copper demand will not reach the level of 2019 as the slow pace of recovery in the construction industry has suppressed demand for power lines."
A chip manufacturing plant under Renesas Electronics was hit by a fire last month. The plant is located in northeastern Japan and it will take at least 100 days to normalize production.
A spokesperson for Sumitomo Metal said, "We haven't seen any signs of slowing orders from automakers yet, but we are concerned that chip shortages may force them to significantly reduce production.".