Reuters reported that Japan's demand for copper may have hit bottom, helped by a rise in demand from the semiconductor and automobile sectors, but officials said that it was too early to say the industry was on a solid recovery path.

Data from the Japanese Electric Wire and Cable Makers' Association showed that Japanese copper wire and cable shipments rose almost 20% in June from the previous month to an estimated 53,600 tonnes in June. Still, that was down nearly 25% from a year earlier.

Mr Masaichi Suwa the association's secretary general said that "The June figures look good but that's because the May figures were pretty bad. Many manufacturers had shut their plants during a strong of public holidays in May.

He said that the industry was worried how August's figures would look as many Japanese manufacturers also close their factories for the summer holidays that month.

Mr Suwa said that the slump in demand from the construction sector, which accounts for about 40% of total consumption, was particularly worrying. The construction sector was now processing orders placed some 6 months ago and industry officials said the outlook for construction looks severe. He said that "We'll have to see how the situation looks in the autumn."

(Sourced from Reuters)