Sumiden Hitachi Cable Forecasts Y/Y Flat Building Wire Shipment in 1H F2012

Sumiden Hitachi Cable, Japan’s largest sales company of building wires and cables jointly controlled by Hitachi Cable, Sumitomo Electric Industries and Tatsuta Electric Wire & Cable, plans its sales volume in copper to increase slightly for first half of fiscal 2012 starting in April compared with the same period of F2011. The firm forecasts domestic demand for major three items, mainly low voltage XLPE cable, would keep almost the same monthly average volume at around 14,500 tonnes of copper in 1H F2012 from a year earlier. The demand is expected to maintain current stable level.

Sumiden Hitachi Cable estimates Japanese demand for three major items would increase by 6% to average 15,800 tonnes in copper per month in 2H F2011 from a year earlier. The company’s sales volume is expected to increase by 3% year-to-year while increase by 8% against the company’s plan. Building wire and cable shipment was steady for large building projects mainly in Tokyo while the shipment increased by 20% year-to-year in Tohoku area mainly for restorations of the disaster areas of the Japan Earthquake. The shipment was also active for public facilities toward the end of Japanese major fiscal year in March.

In 1H F2011, domestic demand for major three items increased by 12% from a year earlier to average 14,700 tonnes per month. Sumiden Hitachi Cable’s sales volume was almost as same as in 1H F2010. The actual and speculative demand temporarily expanded after the Japan Earthquake until mid May and downturned in June.

In 1H F2012, such a specific demand movement would not occur. Sumiden Hitachi Cable analyzes there would be few very large construction projects, the demand related to restorations in the disaster area would slow down, and the new demand related to reconstructions in the disaster area might not emerge in 1H F2012. Thus the total demand and the company’s shipment volumes are forecasted to level off at the year-to-year flat level.