Japan Major Indoor Cable Makers Replenish Inventory by Extra Operation

Japanese major electric cable makers decided extra operation of their main production lines for indoor power wires and cables during Japanese long holidays from late April to early May. They plan several-day extra operations in order to replenish the inventories, mainly for XLPE power cable (XLPE insulated and PVC sheathed power cable), remarkably decreasing after Japan Earthquake. Meanwhile, the makers don’t seem to replenish VVF power cable (vinyl insulated vinyl sheathed flat-type power cable) inventories during the holidays.

Sumiden Hitachi Cable, Japanese largest sales company of indoor wires and cables, offered extra operations to the group makers including J-Power Systems, Tonichi Kyosan Cable and Tatsuta Electric Wire & Cable especially to replenish 6kV XLPE cable inventory.

The secondly largest sales company, Fujikura Dia Cable also offered extra operations to the group makers including Nishi Nippon Electric Wire & Cable, Yonezawa Electric Wire Company and Mitsubishi Cable Industries. An officer of Fujikura Dia Cable explained the group makers are currently increasing outputs by 30-40% from the pre-disaster level.

Furukawa Electric and SWCC Showa Cable Systems also plan extra operations during the holidays. Meanwhile, Yazaki Corporation stops indoor wire and cable plants from April 30 to May 8.

Domestic demand for indoor power cable surged after Japan Earthquake to repair damaged facilities including Fukushima Dai-Ichi Nuclear Power Plant, to restart suspended thermal power stations, and to construct or increase private electric generators at manufacturing industry plants. However, several major production lines for indoor power cables were downed for 1-2 weeks after the earthquake. Thus cable makers’ inventories remarkably decreased.

On the other hand, as for VVF cable, Yazaki Corporation, one of the top share makers of VVF cable, doesn’t operate the plant during the holidays. Sumitomo Electric Industrial Wire & Cable, Sumiden Hitachi Cable’s group company, doesn’t schedule extra operation of VVF cable productive lines, too. Market demand for VVF cable settled down in mid April as a rebound of speculative purchase in March.