Group items tagged

Shanghai Metals Market (SMM) reported that the average operating rates of copper cablemakers in China rose by 10 percentage points to reach 78.7% in August. Newly tendered contracts from the State Grid Corporation of China during July and August led to the production increase. Figures from the National Bureau of Statistics also indicate that cable output rose by 2.5% m-o-m to 3.53M km in August. In addition to this, an August survey of Chinese copper wirerod fabricators by SMM showed a 2 percentage point increase in the industry's average utilisation rate from the previous month, reaching 75%.

Nexans the leading cablemaker has won a contract from Almabani to supply special airfield lighting cables for King Abdul Aziz International Airport (KAIA) in Jeddah, Saudi Arabia. The contract includes the supply of 1,500 km of 5kV easy-to-install and watertight primary cables to connect the power network to the lighting transformers located on runways that power the airfield lights. Deliveries of the cable manufactured at Nexans' Lyon, France plant, began in 2008 and continue in 2009.

Superior Essex Energy Inc., the US based energy cablemaking division of Superior Essex Inc., began commercial production of its new suite of low voltage energy cables. The new products include 300V and 600V instrumentation cables and 600V control cables for industrial, utility power or station control circuits. The company is manufacturing its new offering out of its Tarboro, NC facility which represents Superior Essex Inc.'s first North American production facility for low voltage energy cables. Superior Essex Energy Inc. has plans to expand its portfolio to supply the Commercial, Industrial and Energy markets.

Doha Cables, a Qatar based cablemaker and subsidiary of El Sewedy Cables, will expand its production capacity for 400V and 500V cables to meet increasing domestic demand. Qatar will host the 2020 Olympics and the 2022 FIFA World Cup and is investing heavily in new infrastructure projects to provide support for planned growth of the local tourism industry. The company also stated that demand from the building sector has been rising. El Sewedy's largest areas of operation are in the GCC, North Africa and Egypt. The company has expressed its plans to expand into other rapid growth nations, including Russia and India.

Sumitomo Electric Industries Ltd., the Japanese integrated cablemaking company, announced plans to build a new copper wirerod plant in Thailand. The facility will add 17,000t/m of capacity to the company's current 20,000t/m, which is split between rod mills in Japan and Indonesia. Sumitomo intends to supply copper wirerod primarily for downstream processing into automotive wire harnesses and electric motors in order to meet growing demand from the emerging South East Asian car markets.

Yazaki Corp., the Japan-based cablemaker, has implemented plans to begin exporting low voltage XLPE cables from Japan to Thailand beginning in February for a duration of two to three months. This comes as a result of increased demand from Thailand's industrial sector, as factory owners look to repair, rebuild or relocate water-damaged factories. Yazaki has a local production subsidiary for power cables called Thai-Yazaki Electric Wire, but Thai-Yazaki cannot meet the current strong demand independently. Yazaki's two building wire plants in Japan are currently in full production (including Saturdays) and those cables which are ready for shipment are undergoing final checks to ensure that they meet Thailand's electrical standards.

Nexans, a leading global cablemaking company, has been awarded a contract to design, manufacture and supply Chevron U.S.A with 42km of power umbilicals and terminations for the Jack and St. Malo oil fields in the Deepwater Gulf of Mexico. In addition to the conductor which delivers a high voltage power supply, the power umbilical, which was pioneered by Nexans, includes a number of steel tubes, fibre optic elements and signal cables for control and monitoring purposes. By eliminating the need to transport and install separate power and control lines, the power umbilical significantly reduces transportation and installation costs.

Southwire Co. Inc., a US cablemaker with a focus on building wire production, said that the US residential construction industry has bottomed-out after near-continuous contraction since being heavily impacted by the global economic crisis in late-2008. The company said that it is now necessary to use statistics on housing area under construction in order to analyse and pre-empt demand as government figures on housing starts cause an overestimation of the strength of the recovery in wire and cable demand. This is due to homebuilders more frequently electing to construct smaller homes, requiring less wire and cable than average-sized homes.

It is believed that a cash crunch is reducing orders in the Chinese power sector, which accounts for 60% of the country's copper demand. Analysts predicted strong copper demand in H1 as the country was eager to repair the damages to power networks caused by the heavy snow in the early part of the year. However, repairs have so far mainly been made to aluminium and fibre-optic cables. Cash flow problems at copper rod and wire plants have occurred following the government's tight credit policy and high copper prices. Some 30% of copper wirerod production capacity is being reported idle. The cash shortages have also delayed copper buying from active copper fabricators, further dampening consumption of the metal. China, a net importer of copper, exported 31,000 tonnes of refined copper in April, up 227% year-on-year, with the possibility that the country might have been re-exporting the metal since late February. China's General Administration of Customs reported that 14,000 tonnes were exported to South Korea, six times that from the same period last year. This perhaps confirms that traders were re-exporting copper it has imported to LME-approved warehouses to take advantage of the discount between Shanghai and LME copper prices.

Neans focuses on "priority markets"

In the past few days world leading cablemaker Nexans has announced one acquisition, one new joint venture and one asset disposal. On the 30th May, Nexans acquired Intercond a leading Italian manufacturer of special cables for industrial equipment and subsea applications. The company had sales of €90m and employs 150. "This [€90m] acquisition fits totally in the Group's strategy by increasing the proportion of its business in high value-added special cables", said Gerard Hauser, Chairman and CEO of Nexans. On the 2nd June, Nexans released a press report confirming that it has formed a joint venture to create a wire and cable plant in Qatar, the country's first manufacturing facility. Qatar International Cable Company (QICC) is owned 29% by Nexans with the balance being owned by Special Projects Company and Al Neama Industrial Co. The new plant in the industrial city of Mesaleed, 40km from Doha, and will employ 210 people. By the end of 2009 it will begin manufacturing low and medium voltage cables for buildings and energy infrastructure as well as special cables for the oil and gas industry. This JV will generate sales of $150m per year by 2010 at current copper prices. Finally, Nexans confirmed that it has completed the pre-announced sale of its copper telecom cable plant at Santander in Spain to the British company B3 Cable Solutions for €17m. These three actions continue to refocus the group's strategy on priority market segments.

US speciality brass mill Ansonia Copper and Brass Inc. has announced that it will lay off 85 of the 102 employees at its Liberty Street, Ansonia, factory in Connecticut. The plant manufactures copper alloy rod and wires. Company President Raymond McGee said "it's a very, very difficult situation". He blamed the redundancies, on top of 76 employees laid off in April 2007, on the company's struggle with escalating costs. Since 2002 electricity costs have soared 239%, natural gas 200%, fuel oil 125%, and copper and nickel 500% apiece. Ansonia's other facility in Waterbury, CT, which manufacturers copper alloy tube is unaffected by the announcement.

Further evidence of the impact of the North American economic slowdown on copper demand has recently been published by the ABMS and government statistical bodies. North American copper wirerod production plummeted 9.6% year-on-year to 174,000 tonnes in April. Output had been on a downward trend but the magnitude of the deterioration in April has still come as something of a surprise. A year-on-year increase of 2.0% in North American output January had been followed a 1.0% fall in February and a 2.7% drop in March. In April Canadian output was flat year-on-year due to improving export sales to the US, while US production fell 9.8% year-on-year and Mexican shipments slumped by 17.5%. On a year-to-date basis North American wirerod production was 2.9% lower in the four months to April 2008. Weakening demand from the automotive industry, coupled with a resurgance in copper prices and the return of Russian wirerod imports has clearly led to a deteriorating market situation for domestic mills.

Mueller Industries second quarter results highlight the tough times that the US brass mill industry is facing, but that companies can still operate profitably in a challenging market environment. The company's plumbing and refrigeration segment saw sales fall 11% to US$404m, while its operating profits dropped 32% to US$35m. The company blamed lower shipment volumes and lower spreads for the weaker performance. Sales at the company's OEM division, which includes its brass rod activities, rose 10% year-on-year to US$354m, while its operating profits rose 5% to US$19m. The improvement here is due to acquisition of Extruded Metals. Commenting on the results Harvey Karp, Chairman of Mueller Industries said "Mueller's earnings for the first half of 2008 were achieved despite the continuing decline in the housing industry, the sub-prime mortgage meltdown, the turbulence in the financial markets, rising metal costs, sky-high energy prices and a slowing national economy. Considering these adverse circumstances, we are pleased with the results."

Furukawa Electric Co. Ltd. and Tohoku University Graduate School have jointly introduced a medical application made of copper alloy. This development refers to an apparatus that uses copper shape memory alloy and aims to correct ingrown nails. What the apparatus does is to insert an alloy plate at both sides of the nail correcting its curvature. Tohoku University is currently using the instrument on a pilot basis, however, Furukawa is planning to start selling it within this fiscal year. The company expects to sell a significant volume of the newly developed instrument as about 10 million people in Japan suffer from ingrown nails.

Furukawa Magnet Wire Co. Ltd., a subsidiary of Furukawa Electric Group, announced that it has expanded its facility in Malaysia. Production capacity of its TEX-E, trilayer insulated wire, which is principally used in rechargers for computers and mobile phones, has been doubled. The company expects that demand will increase in China and other emerging markets in the medium to long term. In addition, it was reported that Furukawa Electric increased its stake in Chongqing Changhua Automobile Harness Co. Ltd., the China-based wiring harness assembler, to 65% from its previously held 50% share.

Four major manufacturers of wire and cable are set to increase their level of capital investment in this fiscal year. The companies are expected to make large investments within emerging country markets, which promise growth over the medium to long term. Another area of investment is the field of smartphone components. Sumitomo Electric Industries Ltd., SWCC Showa Holdings Co. Ltd. and Furukawa Electric Co. Ltd. will expand capital investment "significantly", while Fujikura Ltd., will do so only "slightly".

Nexans SA, the French cablemaker, expects to acquire a 75% share of China-based Shandong Yanggu Cables Group's power cable business unit within six to eight months. Nexans have announced that they intend to operate the business as a joint venture with Shandong and plan to double revenues from high-voltage and ultra-high voltage cable produced by the unit. Shandong's power cable unit had a turnover of €150M in 2010 and Nexans anticipate that this will rise to €200M within five years.

It was reported that China's Amer International expects to complete construction of its new 250,000t/y copper rod production line, located in its Chaohu City facility in Anhui Province, by year-end. The expansion project will bring Amer's production capacity to 500,000t/y and its total copper rod production is anticipated to reach 200,000t in 2011. A spokesperson for the company said that it will manufacture rod for both domestic and foreign export markets. In addition, Amer also intends to source copper cathode for rod-processing from within China and also overseas. Total investment for the project amounted to RMB2.5B.

Southwire, the US-based aluminium and copper cablemaker, has said that while the use of copper in most electrical applications is unlikely to change, some manufacturers are likely to move toward the use of aluminium wire. The auto industry is increasingly using aluminium wire for traditional copper applications. This is occurring most predominantly outside of the US, however domestic autos companies have also been using aluminium wire for battery cable and aluminium wire harnesses for lights. Southwire stated that for most electrical applications copper usage will remain dominant because of its overall reliability.

Guangzhou Jiangtong Copper products, a subsidiary of Jiangxi Copper, announced that it began trial production at its new 400,000t/y copper wirerod plant this week. The company expects to supply nearby consumers in southern China as well as those in foreign markets in Southeast Asia. Capital investment expenditure totalled RMB2.0B.