Japan Construction Electric Wire Demand to Drop by 5-10% in F2008

Japanese major electric wire makers and dealers expect the shipment increases by 5-10% in copper weight for construction industry in fiscal 2008 started April from fiscal 2007. They expect the shipment could reach fiscal 2006 level after drop in fiscal 2007. However, the dealers’ market is still slow and the slower demand pressures on the market price. They reported the shipment was estimated to decrease by 5-10% for fiscal 2007 from fiscal 2006. The demand was slump with fewer major plant construction works and very slow mid- and small-sized building in the second half of the year. They expect the demand increases in fiscal 2008 from fiscal 2007 due to major plant projects for flat television mainly in western Japan. However, they concern the major building projects decrease for middle and eastern Japan. The dealers’ market was very slow since November 2007 due to confusion after new building standard law started in June 2007. The market is expected not to recover until June or later. The major makers plan 5-6% price hike for fiscal 2008 from previous year when the cost increased for copper metal and subsidiary materials. However, the slower demand already pressures on the market price. Japanese Electric Wire & Cable Makers’ Association expected the makers’ shipment increases by 2% to 382,000 tonnes in copper weight for construction industry in fiscal 2008 from fiscal 2007. The association estimates the shipment decreased by 3.1% to 374,500 tonnes in fiscal 2007.