Japanese Copper Alloy Fabricators to Suffer 1.3B Yen Cost Up by TEPCO’s 17% Hike

Japan Copper and Brass Association estimates Japanese copper and copper alloy fabricators would suffer production cost up by total 1.2-1.3 billion yen per year if Tokyo Electric Power Company (TEPCO) carries out electricity charge hike by average 17% against corporate clients as the company currently offers. The association will express disapproving stance since cost upsurge lowers price competitiveness of Japanese copper alloy fabricating industry against offshore products.

There are 23 production sites of the members belonging to The association inside TEPCO’s service area. These production sites cover 43% in Japanese total output weight of copper and copper alloy fabricated products. Electricity charge paid by the 23 sites totaled approximately 7 billion yen per year in 2010-2011. Thus the cost up is estimated to total 1.2-1.3 billion yen per year in the case of electricity charge hike by 17%.

Copper and copper alloy fabricators use electricity especially in melting process and hot rolling process. Electric power cost upsurge would impact manufacturers of sheet, strip and tube largely. It would be difficult for the fabricators to pass cost up on their selling prices since electricity charge hike is limited in TEPCO’s service area. If the price hike was approved, expensive products would lose competitiveness at overseas or cheaper imports might increase in Japan.

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