Japan: Copper wire shipments fall by 1.7% in FY'22 amid decline in construction, electric power sales

According to the Japan Cable and Cable Manufacturers Association, the estimated copper wire shipments for FY22 (April'22-March'23) totalled 619,901 tonnes, indicating a 1.7% decrease from the previous year, as per Japan Metal Daily.

Despite the fact that sales for automobiles and exports surpassed previous year's level, there was a decline in sales for electric power, construction and electronic sales, and electrical machinery year-on-year (y-o-y).

In terms of sectors, the sales for telecommunications were 7,726 t in FY'22, reflecting a y-o-y decline of 14.2%. The decrease might occured due to replacement with optical cables as well as reduced investment in telecommunication carriers.

The production for electric power sector decreased by 11.4% y-o-y to 41,879 t, which could be attributed to electric power companies' weak capital investment that fell below previous year's level.

The production for electrical machinery sector decreased by 3.5% y-o-y to 131,753 t, mainly due to weak demand for electrical equipment, heavy electricity, and electronic communications. On the other hand, the production for automotive applications inched up by 0.1% y-o-y to 84,057 t in Financial Year 2022 (FY'22).

Despite a decrease in production of machinery due to impact of semiconductor shortage on automobiles, there was an improvement in demand compared to the previous fiscal year when the impact was severe, resulting in a positive outcome.

The sales for construction and electronic sectors edged down by 0.2% in FY'22 to 297,385 t, which is impacted by rising material prices and the extension of construction periods for buildings due to shortages of materials and manpower, resulting in a y-o-y decline.

Sales to other domestic demands, primarily related to capital investment, experienced a y-o-y decrease of 6% to 39,683 t in FY'22. However, exports showed a significant increase of 30.7% y-o-y, amounting to 17,418 t, mainly due to the implementation of large-scale projects related to electric power, which exceeded previous year's level.

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.