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Because of slowing housing construction and the consequent decline in demand for gas appliances and water taps, the demand for brass bars in Japan is falling. Demand is also being affected by the decrease in car industry activity. As a result, brass bar makers in Eastern Japan are planning to reduce production output for the fourth quarter by 20-25% on a year-to-year basis. August production in Japan was ''as low as 16,362 tonnes'', according to the Japan Copper & Brass Association. Monthly order receipt volume for the last three months of 2008 is expected to average just 15,000 tonnes.

Kitz Metal Works, a brass bar maker and subsidiary of the Kitz group, announced plans to add a continuous casting line at its Chino plant in Japan. The US$2.6M development will add a further 18,000t-19,200t to the company's annual billet production capacity. Construction work is set to begin this month and the plant is expected to be commissioned by the end of the year. The company expects that the lower production cost of the new casting line will allow for the investment cost to be recovered within five years.

Hitachi Cable Ltd. announced that it will cease production at its Tsuchiura plant by March 2012, effectively ending its domestic copper tube business. The facility produces copper tubes for air conditioners and in FY2010 it contributed to a sales volume of 20,000t; a sales value of ¥17.76B or 4.2% of the company's total revenue. The withdrawal from the business is attributed to difficulty maintaining profitability after air conditioning manufacturers shifted operations to foreign markets. Hitachi will keep a 50-50 JV with Furukawa Electric in Shanghai and its 36% share of a Thailand based copper tube manufacturer.

Sony Corp will invest $369 million (40 billion yen) to power up its lithium-ion battery production operations, adding new facilities and augmenting existing lines. The infusion, which Sony said is the first phase of investment in lithium-ion batteries the company is undertaking as part of efforts to reinforce core areas of its component and semiconductor business over the next three years, will be used to construct new production facilities and to enhance existing lines at Sony's lithium-ion battery production sites in Japan, the Motomiya Technology Center and Tochigi Technology Center of Sony Energy Device Corp. Sony said it is making the investment in response to the growing demand for lithium-ion batteries and that the new production facilities will focus on electrodes, battery cell production lines, and charge and discharge equipment, among other technologies. Sony further reminded its expanding lithium-ion battery production in Singapore and China, and said that in total its monthly production capacity will increase from the current level of 41 million cells per month to 74 million cells in 2010. Sony's $369 million investment will start in its current fiscal year and continue through the second half of its fiscal year 2010. Sony's fiscal Q1 2008 concluded in June. Meanwhile, Matsushita Electric Industrial Co recently committed $923 million (100 billion yen) to build a plant in Osaka, Japan, that is expected to bring its cell production to about 75 million a month from its current 25 million cells per month. Sanyo Electric Co has also reportedly announced plans to invest, promising $1.15 billion (125 billion yen) to develop its rechargeable-batteries business over the next three years. That investment is expected to increase cell output to 90 million per month from Sanyo's current 70 million cells per month. All three of the Japan-based companies last year suffered from loses brought on by their battery operations. Sony-made lithium-

The Japan Copper & Brass Association reported Japanese copper rolled product import fell by 2.5% y-o-y to 50,057t in the fiscal year ending March 2008. While volume of import was still high, it has fallen y-o-y the first time since the fiscal year ending March 2002. Copper tube import decreased by 19% y-o-y to 10,661t, partly due to the slowdown of new housing starts after the Japanese imposed new building standard law. Biggest importers to Japan are reported to be South Korea, China, Germany, Taiwan and North America.

According to the Japan Copper and Brass Association, total production of copper and copper alloy semis fell by 4.1% y-o-y to 72,770t in July. Output also contracted by 0.5% m-o-m in July, a second consecutive monthly decline. The fall is attributed in large part to the struggling automotive sector, which has been strongly impacted by the 11th March disaster.

Production for domestic shipments contracted by 6.6% y-o-y to reach 51,112t, whilst output for export markets fell more rapidly in January, reaching 8,898t after a 23.1% y-o-y decline (this however, was narrower than the December drop in exports of 30.7% y-o-y). Copper strip still represented the most heavily produced brass mill semi-fabricated product (27.7% of overall production in gross weight) but output decreased by 11.3% y-o-y, amounting to 16,600t in January. This was principally attributed to weak interconnector demand, the impact of the flooding in Thailand and the highly appreciated yen affecting the export market. Copper tube output decreased by 14.5% y-o-y to 9,750t in January, on weak demand from air conditioner manufacturers caused by bad weather and a slow world economy. Brass bar production fell by 7.7% y-o-y but rose by 900t since December to reach 14,206t in January. The change was attributed to improving demand from the domestic automotive and plumbing sectors.

KITZ Corporation has announced that it will integrate its two brass bar manufacturing subsidiaries with effect from July 1st. According to the plan, KITZ Metal Works will take over Kyoto Brass and brass bar production will be integrated at the Nagano plant, Japan owned by KITZ Metal Works. As a result, Kyoto Brass' plant in Kyoto, Japan will be closed. The decision is attributed to the global economic downturn that has been taking place since autumn 2008. Total brass bar output of the two plants in January amounted to 3,000t, down by 40% y-o-y. The company anticipates that demand will not recover in the short run.

That "evidence" relates to an article published by The Australian on May 28 which stated, "In Japan, the world's biggest importer of rare-earth metals, more than 10,000 tonnes per year about a fifth of the country's total annual consumption are thought to enter the country through a thriving black import network without which Japan would already be in a severe supply crisis, a senior government official said." We believe a black market exists, in this particular case, because of several actions taken by the Chinese government (by the way, the RE (rare earths) black market in Japan receives its supply from China). The biggest reason a black market exists however, relates to mining quotas and export restrictions. In addition, China has taken an active international M&A stance to make strategic investments.

"The rise to the top of global construction, which coincides with China's displacement of Japan as the world's second-largest economy, underlines a decade- long power shift in the industry from the mature markets of the US, Japan and western Europe to China, India and a clutch of smaller emerging economies."

Sumiden Hitachi Cable said it forecasts Japanese electric cable makers' shipments of VVF (vinyl insulated vinyl sheathed flat-type) cable will total an average of 4,500-4,700 tonnes per month in copper weight in fiscal 2012 ending in March 2013. This would be an increase of around10%. However, if the reconstruction works in disaster areas affected by the Japanese earthquake were delayed, the monthly shipment forecasts could show a slight fall. Sumiden Hitachi Cable is the largest sales company of building cables and wires in Japan and is jointly controlled by Hitachi Cable, Sumitomo Electric Industries and Tatsuta Electric Wire & Cable. Sumiden Hitachi Cable is the third largest supplier of VVF cable in Japan.

Rolled copper production in Japan decreased by 5.7% in July y-o-y according to the Japan Copper and Brass Association. The fall was attributed to a global economic slowdown which is pushing downward pressure on demand. Seasonally adjusted July output reached 77,764t, up by 9% from June.

The Japan Electric Wire and Cable Makers' Association reported that domestic shipments of copper wire and cable in Japan declined by 0.4% in November to reach 60,400t, which represents the second-lowest monthly level in the past 35 years. Demand from carmakers and construction remained firm but orders from electric power companies fell by 17.6% y-o-y to 5,400t in November.

Yazaki Corp., the Japan-based cablemaker, has implemented plans to begin exporting low voltage XLPE cables from Japan to Thailand beginning in February for a duration of two to three months. This comes as a result of increased demand from Thailand's industrial sector, as factory owners look to repair, rebuild or relocate water-damaged factories. Yazaki has a local production subsidiary for power cables called Thai-Yazaki Electric Wire, but Thai-Yazaki cannot meet the current strong demand independently. Yazaki's two building wire plants in Japan are currently in full production (including Saturdays) and those cables which are ready for shipment are undergoing final checks to ensure that they meet Thailand's electrical standards.

Japanese output of copper and copper alloy fabricated products increased by 5.4% to 73,680 tonnes in November, slightly down from 74,079 tonnes in October, according to the Japan Copper and Brass Association. This figure includes sheets and tubes, mainly used in automobiles and construction. Demand for copper products was supported by both local consumption and overseas shipments. This year's hot weather has boosted demand from the air-conditioner sector, where manufacturers have been building up inventories after robust sales in the summer.

Furukawa Electric Co. Ltd., the Japan-based wire and cable manufacturer, has reached a plea agreement with the U.S. Department of Justice under which it will plead guilty to U.S. antitrust violations and pay a fine of US$200M. Separate felony charges levelled against three Furukawa executive employees involved in the collusion have resulted in a combined total of 45 months in U.S. jail terms. The case relates to the collaborative investigations by Japan, the U.S. and the E.U. following the February 2010 raids by Japanese authorities on Furukawa and its competitors: Fujikura Ltd., Sumitomo Electric Industries and Yazaki Corporation. The companies are suspected of being involved in price-fixing and bid-rigging within the automotive components industry. All of the manufacturers, with the notable exception of Furukawa who avoided penalties through reporting the cartel, were also fined a total of ¥12B (US$150M) in June by the Japan Fair Trade Commission for anti-competitive offences in the domestic automotive wire harness market. However, the total cost in penalties in the U.S. could escalate as the remaining companies undergo court judgements after they decide to either enter plea agreements or wait for a court hearing.

Japan Copper and Brass Association has reported that August output of rolled copper was down by 6.5% compared to a year earlier, at around 66,050 tonnes. It was the 14th monthly y-o-y decline in a row.

The Japan Copper and Brass Association reported that domestic production of brass mill semis fell by 8.5% y-o-y to reach 64,076t in February. The association also anticipates production of around 67,000t in March, which would represent an 8.3% y-o-y decline for the month and a 6.7% y-o-y contraction in output for FY2011/12. In addition, production in 2012/13 is forecast to rise by 2.4% y-o-y to reach 825,300t of brass mill products.

TEPCO, a Japanese power supplier announced that it will increase its electricity prices for corporate clients by an average of 17% to cover higher energy costs for the use of thermal power plants while the firm idles many of its nuclear power facilities. The Japan Copper and Brass Association diapproves of the move, which it says would add ¥1.2 - 1.3B/y in production costs at the affected brass mills. The 23 copper product fabrication sites within the TEPCO supply area account for 43% of total copper semis output in Japan.

Furukawa Electric announced that it will commission a new electrolytic copper foil factory, located in Taiwan, two months ahead of schedule, in July 2012. The facility is designed to produce copper foil suitable for the manufacture of lithium ion batteries. Furukawa decided to offshore the foil production capacity last year because the appreciated yen had been limiting its competitiveness in supplying the high growth automotive lithium-ion battery market in Taiwan. The company expects to halve its electricity costs in Taiwan, which represent 30% of the total cost of electrolytic foil production in Japan. Furthermore, it is feared that these costs in Japan are likely to escalate with the ongoing strain on power generation and transmission suppliers. This was caused by the continuing temporary closure of nuclear power facilities as it reviews its position on the use of nuclear power generation.

According to preliminary data from the Japan Copper and Brass Association, Japan's April shipments of rolled copper declined by 8.1% y-o-y, to 64,914t. The fall in production was attributed to poor demand from the electronics sector, despite robust consumption by the automotive industry. Nevertheless, shipments of rolled copper increased 3.2% m-o-m.

Tokyo, Japan, Apr 25, 2008 - (JCN Newswire) - Victor Company of Japan, Ltd. (JVC) plans to end production activities at JVC Manufacturing UK LTD. (JMUK) at the end of July 2008 as part of restructuring television business operations. JMUK has manufactured cathode-ray tube (CRT) televisions, liquid crystal display (LCD) televisions and related products primarily for UK and other European markets as a UK subsidiary of JVC.

US speciality brass mill Ansonia Copper and Brass Inc. has announced that it will lay off 85 of the 102 employees at its Liberty Street, Ansonia, factory in Connecticut. The plant manufactures copper alloy rod and wires. Company President Raymond McGee said "it's a very, very difficult situation". He blamed the redundancies, on top of 76 employees laid off in April 2007, on the company's struggle with escalating costs. Since 2002 electricity costs have soared 239%, natural gas 200%, fuel oil 125%, and copper and nickel 500% apiece. Ansonia's other facility in Waterbury, CT, which manufacturers copper alloy tube is unaffected by the announcement.

Further evidence of the impact of the North American economic slowdown on copper demand has recently been published by the ABMS and government statistical bodies. North American copper wirerod production plummeted 9.6% year-on-year to 174,000 tonnes in April. Output had been on a downward trend but the magnitude of the deterioration in April has still come as something of a surprise. A year-on-year increase of 2.0% in North American output January had been followed a 1.0% fall in February and a 2.7% drop in March. In April Canadian output was flat year-on-year due to improving export sales to the US, while US production fell 9.8% year-on-year and Mexican shipments slumped by 17.5%. On a year-to-date basis North American wirerod production was 2.9% lower in the four months to April 2008. Weakening demand from the automotive industry, coupled with a resurgance in copper prices and the return of Russian wirerod imports has clearly led to a deteriorating market situation for domestic mills.

Mueller Industries second quarter results highlight the tough times that the US brass mill industry is facing, but that companies can still operate profitably in a challenging market environment. The company's plumbing and refrigeration segment saw sales fall 11% to US$404m, while its operating profits dropped 32% to US$35m. The company blamed lower shipment volumes and lower spreads for the weaker performance. Sales at the company's OEM division, which includes its brass rod activities, rose 10% year-on-year to US$354m, while its operating profits rose 5% to US$19m. The improvement here is due to acquisition of Extruded Metals. Commenting on the results Harvey Karp, Chairman of Mueller Industries said "Mueller's earnings for the first half of 2008 were achieved despite the continuing decline in the housing industry, the sub-prime mortgage meltdown, the turbulence in the financial markets, rising metal costs, sky-high energy prices and a slowing national economy. Considering these adverse circumstances, we are pleased with the results."

According to data released by the Japanese Electric Wire and Cable Makers' Association, wire and cable sales in FY2008 plunged to 759,368 tonnes compared to 856,151 in FY2007. This represents a 11.3% y-o-y decline, reaching the lowest level since 1976. In addition, copper and copper alloy semis, including sheets and tubes, experienced a record y-o-y decrease in March, the lowest in more than 34 years. The Japan Copper and Brass Association reported that production of copper and copper alloy semis in March shrunk by 60% y-o-y to 34,440 tonnes. For the year ended 31st March, output fell by 19% y-o-y to 806,927 tonnes, the lowest since 1982.