Japan Electric Cable Makers Announce VVF Price Hike Strongly

Japanese electric cable makers are trying to raise the selling price of VVF cable (vinyl insulated vinyl sheathed flat-type cable) to reflect recent cost upsurge of copper conductor and insulating compound. The current market price for electrical wholesalers is around 27 yen per meter for 2-core VVF with 1.6 millimeters diameter. The price is likely to increase along cable makers’ strong selling stances even though electrolytic copper price downturned.

Electrolytic copper ingot price has rapidly surged since mid July as well as crude oil spot price, the indicator for polyvinyl chloride price. On the other hand, demand for VVF cable maintains very low due to residential market’s stagnancy. Japanese cable makers have announced VVF cable price hike several times but the consumers haven’t approved under loose demand and supply balance. The current market price is at the level as much as 500,000-yen or even lower copper ingot price.

One of major cable makers will announce price hike to 30 yen per meter within August and 32 yen per meter effective on September 1. Middle and small cable makers are likely to follow major makers’ hike. Cable makers show strong selling stances though Nippon Mining & Metals revised down its copper ingot selling price, the market indicator, by 20,000 yen to 610,000 yen per tonne on Thursday. For the first step, cable makers try to reach 30 yen per meter in order to improve too low price level.