Japan July Cable Shipments at Highest Since November

TOKYO, Aug. 24 -- Japan's copper wire and cable shipments climbed in July to the highest level in eight months as global demand increased, according to the Japanese Electric Wire and Cable Makers' Association.

    Shipments, which include exports and domestic business, were 58,200 metric tons last month, up 8.9 percent from June and gained 30 percent than May, when they reached the lowest level since February 1975, according to data from the group today. July's shipments were down 21 percent from 73,244 tons a year earlier, it said.

    Copper in London has more than doubled this year amid signs that the global economy is coming out of the worst recession since World War II as record-low interest rates and trillions of dollars in fiscal stimulus spur demand. The Japanese economy grew for the first time in five quarters in the three months to June 30, the government said last week.

    Based on recent increases in monthly shipments, "we may cautiously say demand is gradually recovering," Nobuyuki Goto, deputy general manager at the association's research department, said by phone today. "It's still very tough for domestic consuming industries, especially for the construction sector."

    Cable shipments in the world's second-largest economy totaled 305,818 tons from January to June, the lowest six-month level since the first half of 1975 when the country shipped 301,940 tons, the industry group's data showed. That was 27 percent lower than the first half of 2008.

    First Half

    Of the total, shipments to the automobile sector dropped 46.3 percent to 25,985 tons in the six-month period from a year earlier, the data showed. Shipments to the electric machine and appliance sectors were down 42.4 percent at 58,974 tons and those to the construction and wholesale sectors totaled 140,492 tons, down 17.9 percent.

    Copper for three-month delivery on the London Metal Exchange added 1.4 percent to $6,360 a ton at 1:05 p.m. Tokyo time. Copper has gained this year on speculation that a global economic recovery may improve demand for industrial metals.

    Japan's economy is also being boosted by government measures ahead of an election. Prime Minister Taro Aso, whose party is trailing in opinion polls before the Aug. 30 parliamentary elections, has put forward a 25 trillion yen ($265 billion) stimulus plan.

    The 3.7 percent rise in Japanese gross domestic product in the second quarter followed an 11.7 percent contraction in the first three months of the year. Exports led the revival last quarter, increasing by 6.3 percent.

    In the U.S., sales of existing homes jumped in July to the highest level since August 2007, and German service industries expanded this month for the first time in almost a year, reports showed last week.

    (Source: Bloomberg)