Japan Electric Wire Makers Seek Hike to Cover High Cost

Japanese electric wire makers try to increase the selling price for electric machinery to cover higher cost for the covering materials. Hitachi Cable tries to increase the price by 5-6% by September and Sumitomo Electric Industries is in study for additional hike after hike by March 2008. Other mid sized makers tries to increase the price. Hitachi Cable started negotiation for the averaged 5-6% hike in April. The firm tries to realize the higher price by September and depending on the negotiation, the firm eyes additional hike. Sumitomo Electric already got slightly higher price by March 2008 and would increase the price additionally to cover higher cost for vinyl chloride and polyethylene. Osaka based electric wire maker, Onamba increased the price by 3% in April to cover higher cost for vinyl chloride and tries to increase the price additionally by September. The firm said the vinyl chloride cost increased by 20 yen per kilogram in March and the firm is offered additional 40 yen hike. Vinyl chloride price increased to 131 yen per kg in fiscal 2007 from 116 yen in fiscal 2004, according to Ministry of Economy, Trade and Industry. The price increased by more than 5% in January-April.