Sumiden Hitachi Cable Launches New Price Rule for Building Wire

Sumiden Hitachi Cable, Japanese largest joint sales company of building wire controlled by Hitachi Cable, Sumitomo Electric Industries and Tatsuta Electric Wire & Cable, announced on Wednesday the firm introduces new price rules for main 3 building wire items, including low voltage XLPE cable. The firm shifts to actual selling price announcement, based on accumulation of direct and indirect costs, from conventional price scheme use. The firm aims to bring the new rule totally effective on and after July 1st of this year.

Sumiden Hitachi Cable will set new selling prices of 3 major items appropriate for its cost accumulation and revise the prices when Japanese copper price indicator (JX Nippon Mining & Metals’ ingot selling price) fluctuates by 30,000 yen per tonne. The new price rule will cover Sumiden Hitachi Cable’s all trading, including large lot contracts directly concluded with electric contractors or small lot sales to wholesalers.

Japanese building wire makers, wholesalers and users have used common price scheme for 3 major items so far. They used to select a common price list adjusted with copper price and decide actual contract price by arbitrary percentage of discount off from listed prices.

In November 2010, Japan Fair Trade Commission (JFTC) imposed surcharge payment orders and cease-and-desist orders to Japanese 5 major building wire maker groups against their price cartel. JFTC didn’t prohibit continuous use of conventional common price scheme. However, Sumiden Hitachi Cable explained the firm withdraws from common price scheme in order to enhance fair, free and orderly competition as well as healthy trading.

The other 4 building wire suppliers, Fujikura Dia Cable, Furukawa Elecom, SWCC Showa Cable Systems and Yazaki Corporation, are also preparing for original price rules by each to discontinue conventional price scheme.