Japan Electric Cable Shipment Keeps Flat in F2006

Japanese domestic shipment of electric wire and cable is estimated to increase by 0.6% to 871,245 tonnes in copper in fiscal 2006 ended March 2007 compared with previous year at domestic 139 electric cable makers which belong to Japanese Electric Wire & Cable Makers’ Association, announced by the Association on Tuesday. The shipment kept almost flat from fiscal 2005 and became lower by around 22,000 tonnes than originally estimated 893,000 tonnes as of September 2006, when the shipment for construction market represented year-to-year decrease which is the largest demand field of electric cable in Japan. The shipment was fine for automobiles and power companies.Cable shipment for construction market including contractors and wholesalers, which accounts for about 45% of Japanese domestic cable shipment, represented year-to-year decrease for 8 straight months since June 2006 and in March 2007. The annual shipment was expected to increase by 1.7% to 398,000 tonnes in fiscal 2006 from fiscal 2005 as of September 2006.Domestic construction market was in favorable condition with several large projects for factories and high-rise condominiums in fiscal 2006. However, higher copper price seemed to impact spot cable purchasing by mid- and small-sized contractors. Mid and small contractors were suffered from serious cost expansion for electric copper cables. Additionally they tried to minimize cable inventories to reduce loss risks caused by copper price fluctuation.Cable shipment for electric machines and appliances, the secondly large demand field, is estimated to increase by 1.6% to 208,735 tonnes in fiscal 2006 from fiscal 2005 thanks to steady demand for heavy electric machineries and in-car appliances. Cable shipment growth rate was relatively high for automobiles and power companies. The shipment for automobiles, mainly automotive wiring harnesses, increased thanks to active vehicle production in Japan. The shipment for power companies increased with active capital expenditure by domestic power companies to renew their facilities.