Japan Cable Makers Hike VVF Price by 25-30%

Japanese electric wire and cable makers will increase the spot selling price of 600 volt vinyl insulated vinyl sheathed flat-type cable or VVF cable, which is used for household wiring cable, to more than 50 yen per meter for products with 1.6 millimeters diameter and 2 cores effective on June 1 shipment. The price increases by more than 10 yen or 25-30% from early May. They are suffered from extremely higher domestic copper ingot price, which is indicator for electric wire and cable price, at more than 900,000 yen per tonne. The makers selling price of VVF cable reached to 38-40 yen per meter in early May from 29-30 yen in early December 2005. VVF cable’s price increase was smaller than cross-linked polyethylene insulated vinyl sheathed cable, insulate of vinyl wire and control-use vinyl insulated vinyl sheathed cable, which are major industrial electric wire and cable items. Japanese official copper ingot price increased by 65% from December 2005. However, VVF cable price stayed at less than 40 yen per meter. VVF cable makers, many of which are small sized firms, have weaker pricing power while copper represents only 40% of VVF cables weight. VVF cable selling price by makers accelerated to increase in May reaching 40-42 yen per meter in mid-May and 45-48 yen in late May. With the wide jump, the price is relative low. A source of wholesale dealer, which purchases products from makers directly, said the VVF cable market price should be 80-100 yen at dealers’ reselling price at the current copper ingot price. The dealers’ selling price is 47-48 and some are still as low as 45-46 yen. Secondary distributors, which purchase products from wholesale dealers, already built up VVF cable inventory in April preparing for potential higher price. The wholesale dealers are trouble to pass the higher cost price. The dealers said 50 yen per meter cost price represents 51-52 yen of reselling price. However, the reselling price could take more time to increase.

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