Japan Cu Electric Wire Demand to Rise by Annual 1.5% to F2014

Japanese electric copper wire shipment will increase averaged by annual 1.5% from fiscal 2009 ended March 2010 to 713,000 tonnes in copper volume in fiscal 2014, announced by Japanese Electric Wire & Cable Makers’ Association on Tuesday. The association expects the demand growth is limited due to Japanese manufacturers shift to the production to offshore plants while the demand keeps firm for power generation and next generation vehicle. The association expects the shipment of optical fiber cable is 7.05 million kilometers core, which represents averaged 2% decrease annually compared with fiscal 2009.

The copper electric wire shipment recovers 700,000 tonnes level in fiscal 2014 while the volume is much less than 800,000-850,000 tonnes level in fiscal 2001-2007. The association expects the demand couldn’t recover the level before Lehman shock in the 5 years term.

The association expects the domestic copper wire shipment will increase by averaged 1.5% per year from fiscal 2009 to 685,000 tonnes in fiscal 2014. The demand will increase to hybrid and electrical vehicle, building of battery charge stations, construction of atomic power plant, all electric powered housing and smart grid.

The association expects Japanese manufacturers will shift the plants to offshore site under higher yen rate and severer global competition. Under the move, the copper wire shipment will decrease for electric machine and appliances while the shipment for construction will also decrease due to slower capital expenditure by manufacturers.

The association expects the optical fiber cable demand will be negative from fiscal 2010 through fiscal 2015 after the downward trend since fiscal 2007. The association expects the demand for housing communication wouldn’t increase widely when the increase of the users is peaking recent years.