Sumitomo Light Metal to Start Copper Surcharge for Tube

Sumitomo Light Metal Industries announced on Friday the firm introduces new price mechanism for in-house plumbing copper tube to reflect copper ingot price fluctuation after the firm adopted fixed price mechanism. The firm will introduce new prices for shipment in and after June. The firm maintains fixed prices for polyethylene coated copper tube for in-house plumbing and refrigerant plumbing, though raising both prices rather. Sumitomo Light Metal aims to improve profitability by new price mechanism, which can reflect copper ingot price fluctuation more rapidly than fixed price mechanism, when copper ingot price continues to soar up.Sumitomo Light Metal raised its selling price of in-house plumbing copper tube by maximum 30% for shipment in and after April 2006. The firm could not cover surging material costs and the profitability became much worse when copper and petrochemical material prices continued to increase since 2004.