Japan Copper and Cable Shipments Drop as Automaker Demand Dips



Japan's copper wire and cable shipments declined 2.7% in January decreasing for a second month as demand from the auto, electric machinery and export industries slowed.


The Japanese Electric Wire & Cable Makers' Association said that ahipments totaled 54,500 tonnes last month compared with 56,002 tonnes a year earlier. Deliveries were 56,733 tonnes in December down 3.4% from a year earlier.


Copper in London has declined 1.8% in the past year. Japan's trade deficit swelled to a record JPY 1.63 trillion on energy imports and a weaker yen highlighting one cost of Prime Minister Mr Shinzo Abe's policies that are driving down the currency.


Mr Keiichi Ohki an official at the association's research department said that "Benefits from a weaker yen on exports have yet to be felt. We may see signs of a recovery in demand from the start of the new fiscal year in April."


The association said that copper cable shipments to the export industry dropped 28.2% to 1,100 tonnes in January from a year earlier, those to automakers fell 15.1% to 5,300 tonnes while deliveries to the electric machinery industry declined 4.1% to 12,200 tonnes. Shipments totaled 693,580 tons in 2012, up 1.9% from 680,911 tonnes in 2011.


The Japanese currency has fallen more than 14% against the dollar in the past three months amid Abe's calls for aggressive monetary easing to end deflation. The yen touched 94.46 on February 11 the lowest level since May 2010.

from wireworld