By Jae Hur and Ichiro Suzuki Nov. 24 (Bloomberg) -- Japan’s output of copper and copper alloy fabricated products, including sheets and tubes, dropped 12 percent in October, an industry group said. Production was 69,218 metric tons last month, compared with 79,056 tons a year earlier, the Japan Copper and Brass Association said today, citing preliminary data. That was the 15th consecutive month of decline. Output tumbled to 34,512 tons in March, the lowest since November 1974. Japan’s industrial production is about 20 percent below last year’s level and a slump in domestic demand has depressed consumer prices, which have dropped for seven months. An economic expansion since March hasn’t made up the ground lost during the previous four quarters of contraction, when the economy shrank to its 2003 size. “Although we managed to see a recovery in the semiconductor, auto and electronics sectors, demand for pipes to be used in air conditioners remained subdued,” said Keizo Tani, research section manager at the association. Japan’s government and central bank have clashed over the threat of deflation, indicating Prime Minister Yukio Hatoyama may want stronger monetary stimulus to buttress the economy’s recovery. Price Slump The Bank of Japan said Nov. 20 that growth is “picking up,” and Governor Masaaki Shirakawa said public expectations for consumer prices remain stable. By contrast, Finance Minister Hirohisa Fujii said there’s a “sense of crisis” over deflation and Deputy Prime Minister Naoto Kan urged the central bank to take action to overcome the price slump. The October production of copper and copper alloy fabricated products was the highest level and the slowest drop since November. Japan’s copper wire and cable shipments declined 14 percent in October to 61,000 tons last month from a year earlier on slumping demand from construction and machinery industries, the Japanese Electric Wire and Cable Makers’ Association said Nov. 20. It was the 13th consecutive month of decline, according to the association. Japan’s copper wire and cable shipments dropped 23 percent in the fiscal first half ended Sept. 30 to the lowest since 1971 as the nation’s worst postwar recession slashed demand. To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Ichiro Suzuki in Tokyo at isuzuki@bloomberg.net

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