The market price of industrial electric cable is decreasing in Tokyo. The price is around 1,280-1,300 yen per meter of cut length for 3-core 600 volt CVT (triplex type of cross-linked polyethylene insulated and vinyl sheathed cable) with 38 square millimeters of copper cross section and around 44-45 yen per meter for 2-core 600V VVF (vinyl insulated vinyl sheathed flat-type cable) with 1.6 mm diameter.Wholesalers adopted reselling prices based on 870,000 yen per tonne of copper price for spot dealing last week, when Japanese official copper price declined to 870,000 yen per tonne which is the indicator for electric cable prices. Wholesalers must sell cables at cheaper prices while they hold inventories with high cost prices. They aim to sell cables with higher cost prices as soon as possible with concerns Japanese official copper price might continue to decline.Orders from secondary wholesalers seemed not to increase even after the copper price decreased to below 900,000 yen per tonne. Primary wholesalers did not hurry to purchase cables from makers as well when spot demand stays low and copper price is likely to continue down.Under the situations, some wholesalers aim to sustain the current margin level and some aim to increase sales volume even with margin cut. The former wholesalers try to keep the reselling price at over 40 yen per meter for 2-core 600V VVF with 1.6 mm diameter, which reflects supply and demand balance most sensitively.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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