Building Wire Market Price Sharply Weakens around Tokyo

Market price is sharply decreasing for vinyl insulated vinyl sheathed flat-type (VVF) cable around Tokyo this month. VVF cable is one of major items among building wires. The medium market price is presently around 36-37 yen per meter for VVF cable with 2 cores of 1.6 millimeters diameter at the selling price to electrical wholesalers. The price decreased by 1-2 yen from late May when surplus VVF cables are inflowing into Tokyo market from West Japan and electrolytic copper market price, the indicator, is weakening.

Many sources currently point out building wire shipment has been slow in West Japan, especially around Osaka, due to stagnancy of electrical constructions. VVF cable (2 cores, 1.6 mm diameter) market price has been 1-2 yen lower around Osaka than in Tokyo for recent 2-3 months. The demand has been relatively steady around Tokyo and major VVF cable makers were unwilling to lower their offer prices in East Japan.

However, in late May, major VVF makers turned the position. One major electric cable maker source said VVF cable makers around Osaka are aggressively increasing the shipment to East Japan since local demand is seriously low. Oversupply impacted the market price around Tokyo. Price down of electrolytic copper also affected VVF cable. JX Nippon Mining & Metals lately lower its electrolytic copper selling price, the domestic indicator, to 630,000 yen per tonne.

VVF cable price might continue to decline by additional 1 yen in mid June. The demand is relatively firm around Tokyo but is not so large to absorb the sharp supply expansion. The copper indicator is unlikely to rebound so much in a short term.