Japan Copper Electric Wire Sales to Grow by 7% until F2010

Copper electric wire shipment by 139 of Japanese domestic electric wire makers will increase by 7% to 927,000 tonnes in copper volume in fiscal 2010 ending March 2011 from fiscal 2005, announced by Japanese Electric Wire & Cable Makers’ Association on Thursday. The shipment will recover 900,000 tonnes for the first time since 2000 under firm capital expenditure by private companies and power companies. The association expects the domestic demand is 891,000 tonnes and the export is 36,000 tonnes while the domestic demand for optical cable will increase by 18.7% to 11.97 million kilometers core. The shipment for construction applications, which represents 45% of total shipment and the wire is used for in-house wiring in, will increase to 420,000 tonnes in copper in fiscal 2010. The association expects the shipment will grow at averaged 1.4% per year from fiscal 2005-2010. The demand will increase gradually under firm capital expenditure by private sector though the growth rate is lower than past 2 years. The association expects the public working will keep decreasing and housing investment by private sector is flat. The association expects wide demand growth for power industry. The shipment will increase by averaged 2.2% per year in fiscal 2005-2010 to 80,000 tonnes in fiscal 2010 when power companies are expected to keep high level investment for years after copper electric wire shipment to power industry increased in fiscal 2005 for the first time in 12 years. The shipment for electric machinery, which represents more than 20% of total shipment, will increase by averaged 0.8% per year to 214,000 tonnes in fiscal 2010. The shipment will increase under higher capital expenditure by private companies and power companies while the magnet wire shipment increases for electric components under higher output of hybrid car. The shipment for automobile industry will increase by averaged 1.7% per year to 92,000 tonnes in fiscal 2010 while optical cable shipment will increase by averaged 3.5% in fiscal 2005-2010.