The Japan Electric Wire Manufacturers Association revealed its copper wire demand projections for financial year 2024 (FY 2024). Total volume across all categories reached 632,000 tonnes (t), marking a 2% increase from the prior year, driven by growth in electrical machinery and exports. This forecast anticipated surpassing the previous year’s levels, marking the first such occurrence in three years.
In the telecommunications sector, production reached 8,000 t, reflecting a 5.8% y-o-y increase. With a shift towards optical cables, the demand for metal cables is projected to remain steady. Meanwhile, electricity production amounted to 47,000 t, marking a 5.3% y-o-y rise attributed to increased demand for equipment renewal and renewable energy initiatives.
Electrical machinery production increased by 3.4% y-o-y to 127,000 t, driven by anticipated demand from large-scale semiconductor factories. Sales for heavy electrical applications and home appliances are expected to remain steady, while those for electronics, communications, and electrical components are predicted to rise slightly. Automobile production decreased by 1.7% y-o-y to 93,000 t, attributed to delays in battery EV production and a slowdown in purchasing power domestically and internationally.
Construction and electronics sales rose by 0.8% to 302,000 t, driven by redevelopment projects and the Osaka-Kansai Expo. However, growth is anticipated to be minimal due to labour and material shortages, including the 24-year issue. Exports to domestic demand increased by 0.5% y-o-y to 39,000 t, while private sector business fixed investment remained nearly unchanged. Exports surged by 39.1% to 16,000 t.
Despite projections of a global economic slowdown, electricity demand is expected to rise. Investment in renewable energy facilities for decarbonisation and the development of interconnection lines for stable electricity supply are anticipated. The FY24 forecast stood at 619,500 t, down 85 t from the previous year.|
Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and BigMint.
