Japan VVF Cable Shipment to Increase 4,500-4,700t per Month in F2012

Sumiden Hitachi Cable forecasts Japanese electric cable makers’ shipment of VVF (vinyl insulated vinyl sheathed flat-type) cable would total average 4,500-4,700 tonnes per month in copper weight in fiscal 2012 ending in March 2013. The shipment would increase by about 10% from 4,200-4,300 tonnes of the monthly average in F2011. Meanwhile, the shipment might decrease by 200-300 tonnes per month in the case the reconstruction works are delayed in the disaster areas of the Japan Earthquake. Sumiden Hitachi Cable is the Japanese largest sales company of building cables and wires jointly controlled by Hitachi Cable, Sumitomo Electric Industries, Tatsuta Electric Wire & Cable.

VVF cable is one of the main items among JIS building wires and cables, used for in-house wiring. Sumiden Hitachi Cable is the third largest supplier of VVF cable in Japan.

According to Sumiden Hitachi Cable’s forecast, the actual demand level would be around 4,500 tonnes per month except for the reconstruction demand in North Japan. The current shipment represents stable for new starts of condominiums or aseismic reinforcement of public constructions. It is unforeseeable when, where and in how large scale residential reconstructions start in the disaster areas. Thus VVF cable shipment might fluctuate by 200-300 tonnes per month.

The actual shipment was 3,900-4,000 tonnes of the monthly average in first half of F2011, 2% lower than 1H F2010. In 2H F2011, the shipment is estimated to level off or increase slightly to 4,500-4,600 tonnes per month compared with the corresponding period.

The shipment exceeded 5,600 tonnes for the first time in April 2011 since December 2007 and kept near 3,600 tonnes of the high level in May due to the users’ speculative orders with concerns on the cable shortage after the mega quake while the shipment normally decreases in May. In and after June, the shipment downturned to below 4,000 tonnes and represented year-to-year decrease for 4 straight months.

In 2H F2011, the shipment returned to the normal pace and kept the steady volume. In the corresponding period of F2010, the monthly average reached 4,500 tonnes for the first time since 1H F2008 and represented first year-to-year plus since 1H F2007 thanks to the gradual demand recovery.