KMCT to Raise Cu Tube rolling Charge by 30-50 Yen/kg

Kobelco & Materials Copper Tube, a joint venture between Kobe Steel and Mitsubishi Materials, starts price negotiations with copper tube consumers to raise rolling charge by 30-50 yen per kilogram effective for October shipment. The firm aims to pass surging costs such for fuels, substantial materials, distributions and productive losses when crude oil and copper prices stays extremely high.The hike will cover the all products of Kobelco & Materials Copper Tube, including copper tubes, copper alloy tubes, plastic insulated copper tubes and exports. The firm announces rolling charge hike for the first time since 2005.The firm owes about 70% of cost up to higher energy and sub material prices. Crude oil price was average US$ 106.3 per barrel for January-May 2008, which tripled from the average in 2004. Oil upsurge caused cost up for fuels, packaging materials and distributions. Additionally Japanese power companies announced price hike.As to productive losses, about 1% of copper is lost in manufacturing processes of copper tubes. The loss rate is lower than other copper fabricated products. However, copper metal price has tripled since 2004 and loss value has expanded. The productive loss represents 30% of recent cost up.Other Japanese copper tube makers have also announced price hike. Hitachi Cable announced price hike by 5% in April 2008, Furukawa Electric by 50 yen per kg and Sumitomo Light Metal Industries by 10-15%.