Japan Cable Makers Try to Pass Higher Copper Cost on VVF Price

Japanese major electric cable makers started to announce price hike of VVF cable (vinyl insulated vinyl sheathed flat-type cable) for electrical distributors to reflect higher copper cost. Cable makers aim to raise the selling price against electrical distributors by 1-3 yen to around 43 yen per meter for VVF cable with 2 cores at 1.6 millimeters diameter. However, the hike would not be approved smoothly when distributors’ VVF cable shipment maintains slow.Japanese official copper ingot price, an indicator for domestic electric cable prices, was raised by total 70,000 yen per tonne on 8 and 12 February, for 2 business days in a row. Some electric cable makers announced price hike of VVF cable against cable wholesalers and electric distributors on 12 February when the official copper ingot price hit 890,000 yen per tonne. Cable makers seem to raise the selling price to 43-45 yen per meter for 1.6mm double-core if the official copper price stays at 890,000 yen or more for a while.VVF cable market price is sustained at around 40 yen per meter at electric distributors’ purchasing. Electric distributors are decreasing VVF cable procurement when new housing starts are delayed in Japan. VVF cables are used as in-house power lines. Some cable makers and wholesalers seem to offer less than 40 yen to secure sales volume.VVF cable shipment by Japanese cable makers is estimated at average 5,000 tonnes of copper per month. In November and December 2007, VVF cable shipment represented year-to-year decrease for 2 months in a row. In November, the shipment was lower by about 250 tonnes than the average line despite of autumn demand season in usual years. The shipment seemed to continue year-on-year decreasing in January and the stagnancy continues in February.