Japan Major Electric Wire Suppliers to Increase Shipment in 2H

Sumiden Hitachi Cable (HS&T) and Fujikura Dia Cable (FDC) plan to increase the shipment by 15-20% in copper weight in October-March period compared with April-September. The shipment level is same level as same period of last year. HS&T said the shipment recovers the last year level in October while FDC expects the shipment increases in November. The demand shows sign to increase with a couple of months delay compared with normal year. Japanese largest construction electric wire sales force, HS&T increases the shipment by around 20% in the second half of fiscal 2007 ending March 2008 from the first half. The shipment decreased by 3-4% in the first half from same period of fiscal 2006. The second largest seller of FDC, of which shipment in the first half year was in line with same period of fiscal 2006, plans 15-16% higher shipment in the second half from the first half. The 2 sellers expect the full year shipment is flat or slight decrease from previous year. They expect the shipment increases in the second half when they keep order backlog for major building projects. The demand is delay under slower building activity due to labor shortage, higher materials price and transition process for new building standard. Japanese Electric Wire & Cable Makers’ Association estimates the shipment by 136 members decreased by 7.6% to 29,000 tonnes for construction applications in September from a year earlier. The shipment normally increases in September toward peak season. The association expects the shipment will increase by 1.7% to 202,000 tonnes in the second half year from same period of last year. The outlook is more optimistic than the top 2 sellers.