Electric Wire and Cable 2001

  1. In the past, "electric wire" was a generic term referring to metal wires that conduct electricity.? More recently, however, some of these "electric wires" - optical fiber cables, for example - are made of glass or plastic fibers and used to transmit optical signals.? These days the terms "electric wire" and "cable" are nearly interchangeable, but, generally speaking, the latter are thicker, have a more complicated structure, and are enclosed in a sheath.

  2. Electric wire plays an integral role in everyday life, with applications spread across a range of industries that include electric power, telecommunications, electric machines, steel, automobiles and construction.

  3. Electric wire can be classified in many ways: by conductor material (copper, aluminum, glass and plastic fiber); conductor composition (single, stranded); covering (bare vs. covered; covering material); single core or multi-core; and by application.

  4. Varieties of electric wire include: bare copper electric wire; aluminum wire; winding wire; wire for equipment; wire for communications; cable; wire and cable for electric power wire; covered wire; wire for transportation equipment; other insulating wire; and optical fiber cable.

  5. Some 90% of electric wire is made of copper because of its high conductivity (second to silver) and ease of processing and connection. Other materials include aluminum and optical fibers, with a limited use of copper alloy for trolley car wires and headphone cables.

  6. There are over 400 electric wire manufacturers in Japan.? The biggest six include The Furukawa Electric Co., Ltd., Mitsubishi Cable Industries, Ltd., Showa Electric Wire & Cable Co., Ltd., Hitachi Cable, Ltd., Fujikura Ltd., and Sumitomo Electric Industries, Ltd.? The Japanese Electric Wire & Cable Makers' Association is comprised of 151 members, covering some 90% of domestic production.

  7. Some 90% of electric wire is produced domestically, the remaining 10% imported.? About 10% of domestic production is exported.

  8. Domestic production

    1995 1997 1999
    Bare wire 96,146 95,097 75,069
    Winding wire 230,600 219,899 181,359
    Wire for equipment 76,087 80,729 62,057
    Wire for transportation equipment 43,909 48,699 46,691
    Wire and cable for communications 63,009 65,353 49,603
    Wire and cable for electric power 293,497 315,087 276,046
    Other insulating wire 207,853 220,640 175,511
    Aluminum wire 90,291 94,704 59,714
    Total 1,101,392 1,140,208 926,050

    Unit: Ton

    Source: Japan Trade Monthly

  9. Exports in the year between April 1999 and March 2000
    Copper wire
    Aluminum wire
    Quantity Value Quantity Value
    54,145 58,675 6,320 2,555
    Unit: Ton, million yen
    Source: Japan Trade Monthly

    Top 10 destinations (copper and aluminum wire combined)

    Quantity Value
    1. Singapore 12,551 11,119
    2. Korea 8,727 9,786
    3. Malaysia 8,521 2,195
    4. Hong Kong 5,769 5,922
    5. Taiwan 5,056 4,508
    6. China 4,740 4,199
    7. U.S.A. 4,161 11,281
    8. Thailand 3,512 1,652
    9. Saudi Arabia 941 729
    10.Philippines 746 1,141
    Unit: Ton, million yen
    Source: Japan Trade Monthly

    Bare wire is often exported and covered at its destination for local consumption (major consumers include the local plants of Japanese companies) or export to U.S.A., Japan and other countries.

  10. Imports in the year between April 1999 and March 2000 amounted to 194.2 billion yen, the top 10 countries of origin being:
    1. China 78,970
    2. Philippines 30,154
    3. U.S.A. 17,536
    4. Thailand 12,194
    5. Indonesia 11,414
    6. Taiwan 9,972
    7. Vietnam 9,342
    8. Korea 7,801
    9. Sweden 4,659
    10.Malaysia 3,144
    Unit: million yen
    Source: Japan Trade Monthly

    The majority of imports are backed by Japanese companies.? Because of tough quality requirements in the Japanese market, only a small amount is imported from non-Japanese companies.

  11. Imports of optical fiber cable for the year between April 1999 and March 2000 amounted to 3,915 tons, 15.352 billion yen.? Top 10 countries of origin for the same period are:
    1. U.S.A. 13,195
    2. Thailand 661
    3. China 342
    4. Germany 302
    5. Italy 96
    6. Malaysia 94
    7. Philippines 85
    8. Indonesia 66
    9. U.K. 65
    10.Mexico 31
    Unit: million yen

  12. Number of Japanese electric wire manufacturers operating overseas (as of 1999)
    China 42
    Malaysia 28
    Indonesia 24
    Thailand 23
    U.S.A. 17
    Hong Kong 13
    Taiwan
    11

  13. Electric wire is subject to the JIS (Japan Industrial Standard), which corresponds to the IEC (International Electro technical Commission) standard.

  14. Competition among small and medium manufacturers is not tough, since most of them deal in different lines (winding, enamel-coated wire, etc.)

  15. Overseas manufacturers may find it quite difficult to penetrate the Japanese market because of the severe quality requirements for electric wire.? For example, wires must be the exactly same color as the electric devices to which they are connected; the diameter must be within the range allowable under the JIS; and the hardness and the softness are strictly fixed.

  16. Manufacturers carry PL insurance, although there has been no instance of litigation in Japan.

  17. Some 12 months ago, unified standards were established for eco-cable.? Eco-cable includes lead-free cable, specified bromine-free flame-resistant cable, and cable made of recyclable vinyl or polyethylene.

  18. As 8) above demonstrates, domestic production is on the decline.? With the advent of the IT revolution, demand for optical communications and electronics products is expected to surge, while existing businesses such as cable for electric power and communications will decline to the point where they become structurally unprofitable.? This will necessitate a drastic shift in these operations.



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