Hitachi Cable Plans Cu Rolled Product Output at 7,400t/m for 2H

Hitachi Cable announced on Thursday the firm plans its half-year output of copper and copper alloy fabricated products at average 7,400 tonnes per month for the second half of fiscal 2008 (Oct08-Mar09). The planned output volume is lower by 1% than the 2H of fiscal 2007 while by 4% than the previous plan announced in April 2008. The output weight would not increase as much as originally expected due to the thinner trend of copper strips. The actual output totaled average 7,358 tonnes per month for 1H of F2008, down by 2% year-on-year.

The firm estimated its copper strip production would decrease by 4% year-on-year to average 3,960 tonnes per month for 2H of F2008. The output weight is expected to decrease from a year earlier when the customers request thinner products despite of steady demand for flat strips mainly from IC related applications. On the other hand, the demand keeps slow from discrete semiconductor applications. Flat strip, multi gage strip and rolled copper foil account for 60% of this “copper strip” category.

Hitachi Cable expects its copper tube production would increase by 2% to average 2,040 tonnes per month for 2H of F2008 from the same period of F2007. The output weight is not high but would recover from 2H of F2007 when copper tube shipment significantly decreased for air conditioners due to slowdown of new housing and building starts in Japan.

The firm estimated the output of copper fabricated products mainly for electrical usages would increase by 2% to average 1,400 tonnes per month for 2H of F2008 from a year earlier. The demand is weak from switch boards while steady from heavy electric machineries.

In 1H of F2008, the copper tube production decreased by 16% year-on-year due to the export decline especially for North America.

Hitachi Cable continues offering price hike of rolling charges for copper rolled products by 40-50 yen per kilogram during 2H to reflect upsurge of copper ingot and other productive costs.