Japan: Copper products demand expected to recover to 700,000 t by FY’28

• AI, data centre expansion support copper strip demand
• Next-generation vehicles boost automotive consumption

The Japan Copper Testing Association expects Japanese copper product demand to recover to around 700,000 tonnes (t) by fiscal 2028, supported by expanding demand from artificial intelligence (AI), data centres and next-generation vehicles. Total demand is forecast at 708,000 t in FY’28, representing an average annual growth rate of 1.9% from FY’25.

The association expects demand to reach 695,800 t in FY’25. While growth rates are likely to vary across products and end-use sectors, several copper product categories are expected to maintain growth through FY’28.

Copper strip demand gains from AI, vehicles

Copper bar demand is forecast to reach 282,200 t in FY’28, representing average annual growth of 3.1%. Demand is expected to benefit from the wider adoption of AI-enabled devices, expanding data centre requirements and rising production of next-generation vehicles, including electric and hybrid vehicles.

Brass strip demand is forecast at 86,300 t in FY’28, up 0.8% annually. While significant growth in home appliance demand is not expected, automotive applications are likely to provide support.

Bronze strip demand is expected to remain relatively stable, reaching 22,400 t in FY’28, with average annual growth of 2.1%.

Copper pipe demand supported by replacement market

Copper pipe production is forecast at 80,400 t in FY’28, up 0.6% annually. Demand is expected to face pressure from declining new housing starts and energy-efficiency regulations for air conditioners.

However, replacement demand is expected to remain firm. Demand for products used in packaged air conditioners is also likely to increase gradually as overseas markets recover.

Brass rod demand gets support from renovation

Brass rod demand is projected at 151,400 t in FY’28, representing average annual growth of 1.6%. Sluggish domestic housing starts are expected to weigh on demand, but renovation-related sales may provide support.

Overseas demand for gas equipment and rising requirements for valves used in semiconductor manufacturing facilities are also expected to support brass rod consumption through FY’28.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.