Japan Electric Wire Price Shows Sign to Drop

Japanese industry interests concern building electric wire price could decrease in the distributors’ market. Some dealers try to keep the margin while others are willing to reduce the selling price for higher volume when the indicative domestic official copper ingot price decreases and the spot demand for electric wire gets slower. Major electric wire makers try to increase the margin in the second half of the year. However, if the distributors’ market price would decrease, the makers could have trouble to increase the price. The demand in the distributors’ market is slow after the decrease from June-July period. The users of small- and mid-sized electric work providers transfer the materials purchase to principal contractors of major electric work companies to avoid higher working capital burden and higher risk for inventory under higher electric wire price. Japanese official copper ingot price decreased to less than 900,000 yen per tonne on November 13 for the first time in 4 and half months after the series of drop since October 23. Domestic electric wire makers pay more than 900,000 yen per tonne for copper and electric wire distributors and wholesale dealers have inventory with the higher price. Some dealers started to sell electric wire at lower price for volume and market share. Major electric wire makers and major wholesale dealers try to keep the margin. Especially, the makers, which cannot cover all of past higher copper price, try to increase the selling price of electric wire. Many of market interests consider the price should keep the level to avoid damage for each player in the market.