Japanese Distributors to Raise Plastic Insulated Copper Tube Price by 10-15%

Japanese copper tube suppliers are trying to raise the selling price of plastic insulated copper tubes applied to air conditioners. Inaba Denki Sangyo, a major distributor of electrical appliances and air conditioning systems, raises the selling price by 10-15% effective for the shipment on October 1. Sumikei Doukan Hanbai, a sales subsidiary of Sumitomo Light Metal Industries, will raise the selling price by 15% effective for November shipment. Other copper tube distributors also seem to enter the price hike when electrolytic copper cost stays high.

Domestic copper ingot price, the market indicator announced by Nippon Mining & Metals, sustained the high average level at 621,900 yen per tonne in August and 617,800 yen in September, though which dropped in November 2008 and represented as low as 338,900 yen in January.

Fix price system is adopted to plastic insulated copper tube for air conditioners. The suppliers decided to announce price hike since they cannot absorb copper cost upsurge only by themselves. Some suppliers examine to offer new price system to reflect copper price fluctuation more flexibly and immediately on the selling price.

The products are used mainly as refrigerant pipes of room air conditioners and package air conditioners. The current demand is approximately 16,000 tonnes per year.