Japan's copper smelters will extend production curbs into the first half of the current financial year as an economic slump shows no sign of letting up. Copper smelters in the world's No. 4 consumer of the metal cut production by about 10 percent at the start of the calendar year as the downturn, underscored by record low business confidence figures released on Wednesday, batters demand. Mitsubishi Materials Corp, Japan's third-largest copper smelter, said on Wednesday that it planned to produce 9.3 percent less copper in April-September than a year earlier, extending curbs from February. Second-ranked Sumitomo Metal Mining Co Ltd said it would keep production levels around those of the previous six months, when it lowered its copper output target by about 7 percent. For the full year to March 2010, Sumitomo Metal expects to increase output by 1.8 percent, after a low output number in the first half of 2008/09 because of maintenance outages and low ore grades For a factbox of Japanese copper smelters' output plans, click on. A Sumitomo Mining spokeswoman said the company was by no means optimistic about copper's prospects this year with domestic demand stuck in a rut. "Our view is that there has been no improvement in the situation we face," she said. She said Sumitomo Mining expects copper output for both the first and second half of the year at about 200,000 tonnes, steady from the six months ended in March when it had revised down its target to 201,000 tonnes from 215,000 tonnes. Furukawa Co Ltd also said it plans to produce 12 percent less copper year-to-year in the April-September period. A company spokesman said: "The situation is looking very unclear, as we have not been able to conclude long-term sales agreements with our traditional customers who say they cannot tell what their needs for the year will be." BUYING BY CHINA Smelters may have kept output levels steady from the last six months, even as the economy deteriorates, on hopes that China which takes around 70 percent of Japan's copper exports, will keep importing the metal in large volumes. Imports into the world's top copper consumer soared in February to a record 271,000 tonnes to boost China's national stockpiles and build its infrastructure, helping drive a rally in London and stemming a rising tide of metal in London Metal Exchange warehouses. LME copper prices, up 30 percent this year, had their biggest quarterly rise since June 2006 in the first quarter. Shanghai's 41 percent quarterly surge was the biggest on record. For a graphic of Japan's copper exports click on: http://graphics.thomsonreuters.com/apr09/JP_CPR0409.jpg Many industry officials, however, have doubts about whether buying by China is a reflection of real demand for the metal. For Reuters analyses on Chinese copper demand, click on Masanori Okada, chairman of the Japan Mining Industry Association, said on Tuesday that he expects China to continue buying copper until May or June, although this was not enough to change this year's bleak picture for the Japanese industry. There is also little joy to be seen in Japan's economic outlook. Japanese business confidence tumbled at its fastest pace ever in the first quarter to the worst on record, the Bank of Japan's tankan corporate survey showed, adding to a string of recent weak economic numbers. "Capital spending numbers are the second-weakest on record, showing companies are still cautious," said Norio Miyagawa, senior economist at Shinko Research Institute. Sumitomo Mining, Japan's top nickel producer, also said it would continue to cut output of nickel, an essential component in the production of stainless steel. It said it plans electrolytic nickel production of 33,200 tonnes this business year, down 7.8 percent from its year-earlier plan, while it expects ferronickel output of 16,800 tonnes, down 25 percent. Other copper smelters, including top producer Pan Pacific Copper Co Ltd, are due to announce production plans for April-September early this month. (Additional reporting by Chikako Mogi; Editing by Michael Urquhart) ((miho.yoshikawa@thomsonreuters.com; +81-3 6441 1854; Reuters Messaging: miho.yoshikawa.reuters.com@reuters.net)) Keywords: JAPAN COPPER/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)

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