Low Cu Price May Accelerate Building Wire Shipment

Japanese electric contractors and electric wholesalers are expected to make orders of building wires when the domestic copper ingot price, the indicator for electric wire and cable prices, plunged down. Actual demand for building wire maintains weak. However, low copper price could stimulate electric wire and cable shipment.

Japanese official copper ingot price is set at 670,000 yen per tonne on 7 October, which dropped down by total 200,000 yen or 23% from the beginning of September and seems to be revised down more by 50,000-600,000 yen.

A source of Japanese major electric cable maker said large electric contractors are making building wire orders for long-term large-size building construction projects when copper ingot price sharply decreased. On the other hand, another maker source said there come fewer orders than expected from middle- and small-class electric contractors for middle-size building projects with relatively short construction terms around 6 months.

The source indicated middle- and small-class electric contractors might hold few construction projects since construction projects of middle-size buildings such as condominiums and large shopping malls are recently postponed or canceled due to economy slowdown. The source referred to another possibility the contractors might wait for order issues with an expectation that copper ingot price decreases more.

As to electric wholesalers, they are waiting and seeing overseas copper market and exchange market to purchase building wires at the bottom price. However, the actual demand still maintains slow.