PRICE TRENDS AND IMPACT ON CABLE MARKETS
Material Prices and Volatility Increase
Trends in raw material prices have always been a major concern for cable-makers. Over the last couple of years not only have prices been rising but the volatility in the price of some key materials, especially copper, has increased. The price volatility has been exceptionally high during the current year. The material with the greatest impact on cable production is copper, but big price rises have been experienced in other metals and in other cable-making materials, including polymers that are strongly influenced by the price of oil.
Cable-Makers Margins Squeezed
Increased material prices have been reflected in higher average sales values reported by cable manufacturers over 2005 and 2006. Elements of higher material costs have been passed on by cable-makers in higher selling prices, but manufacturers are usually unable to pass on all cost increases to their customers. Not only do higher material prices squeeze the operating margins of cable producers, but they also face much higher working capital requirements and in some cases are exposed to greater risks created by the high volatility of material prices.
We are very pleased to welcome the following companies as new members of ICF:
Cable Corporation of India, Ltd., www.cablecorporation.net
CME WIRE AND CABLE, USA, www.cmewire.com
DAIDEN CO., LTD., Japan, www.dyden.co.jp
EXSYM Corporation, Japan, www.exsym.co.jp
HIEN ELECTRIC INDUSTRIES LTD., Japan, www.hien.co.jp
KITANIHON ELECTRIC CABLE CO., LTD., Japan, www.kitaniti-td.co.jp
MAGNEKON, Mexico, www.magnekon.com
SUMITOMO ELECTRIC WINTEC, INC., Japan, www.sei.co.jp
TATSUTA ELECTRIC WIRE & CABLE CO., LTD, Japan, www.tatsuta.co.jp
VIAKABLE, Mexico, www.viakable.com
Zhen Xiong Copper Group Co. ,Ltd., China, www.zhxgc.cn
Preparations for the Chicago Congress, which will be held at The Ritz-Carlton Chicago are well on their way. The Hotel is located on the Magnificent Mile and linked to the famous Water Tower Place with the John Hancock Center next door which offers an excellent view of Lake Michigan and the city skyline on its 94th floor.
More than 100 delegates have already registered and you can find an up-to-date list of registrations in the password protected section (congress). I encourage all members who have not yet registered to do so as quickly as possible as. This will help Renate to make all necessary arrangements for your stay in Chicago.