Affects of the Japanese Earthquake in Wire & Cable

Image from Steelads.com

The recent earthquake and tsunami in Japan has affected everything in their economy, including copper production. The supply of rolled copper has dropped significantly in the last three months. The cause of this is due to an immediate need for temporary housing in Japan rather than electronics and automobile parts, which typically drive rolled copper demand. Rolling blackouts implemented by the Japanese government and power companies are also affecting rolled copper production. Manufactures in Eastern Japan are increasing production levels when they can since it is unknown when and for how long they will have power. There was some relief from rolling outages in April, but they are expected to start again in July. Across the globe we have to watch for an increase in prices on Japanese products as inventory levels drop.

As concentrated efforts continue, we can expect production levels of Japanese goods to increase, but at a low rate. One of the biggest industries that will see a drop in inventory is automotive. As recovery continues, Nissan and Toyota are expecting to return to a full production level before their October targets. This will be a true measure of the economic recovery specifically in Japan. Only time will tell how the disaster on the other side of the world will affect us locally.

To read the full article, “Japan April rolled copper output rises mth/mth” referenced in this posting, please click here.

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