Japan May rolled copper output up 0.1pc yr/yr

TOKYO: Japan's output of rolled copper products rose 2.4 percent in May from April as strong demand for environmentally friendly air conditioners offset weakness in chips and cars, preliminary data showed on Monday.

The Japan Copper and Brass Association said rolled copper output totalled 72,328 tonnes in May on a seasonally adjusted basis, nearly flat from a year earlier.

"Output has been almost flat on a year-on-year basis since March, meaning the magnitude 9.0 earthquake during the month has not had a big impact on Japan's rolled copper output," said an industry official.

"But it is clear that air conditioner makers are ramping up output ahead of the peak demand season, which helped offset soft demand from the semiconductor and auto sectors."

Demand for copper, used in a wide range of items including construction materials, computer chips and car parts, is often seen as a measure of economic activity.

The Japan Electric Wire and Cable Makers' Association said last week that cable copper wire and cable shipments in May inched up from a year earlier to 51,200 tonnes.

That was the first year-on-year rise in three months but the third-lowest level for the month of May in 35 years as exports declined in the wake of a slowdown in the Chinese economy.

Japanese manufacturers have been recovering from the effects of the March 11 earthquake and tsunami, making progress in restoring production and supply chains wrecked by the disaster.

The government last week upgraded its view of the economy's performance and outlook for the first time in four months, following the previous week's upgrade in the Bank of Japan's view of the economy.

But a slowdown of the global economy, particularly China, the world's biggest consumer of copper and Japan's biggest export market, is a worrying sign.

China's imports of refined copper fell 6.9 percent in May to a 30-month low after falling 16.6 percent in April on ample domestic stocks and a slowdown in demand.

Copyright Reuters, 2011