Copper Price: What Effect On Cable Will The New Year Bring?

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Copper Price

What effect on cable will the new year bring? Winter 2006 Issue 1

While the price of copper has been in price, the cost of the cable will increase
threatening to spike for the last 5 by 65%. More complicated cables with
years, with rumours of shortages multiple cores or pairs, screens, braids or a COPPER FLUCTUATION - 2006
and the increase in demand from special insulation or jacket material are less
the emerging markets, it is in these affected by copper fluctuations. £4,500
last 12 months that we have
Reasons for this unprecedented price
witnessed an unprecedented surge in
rise can be attributed to the emergence
growth. Copper peaked in May this of the Asian markets, and their vast
year when it rose to over £4,500/ton. demand for both natural resources and
The price of copper has been driven cable. The construction boom in this
higher by numerous factors including region has increased the amount of copper £3,500
growth in demand, limited stocks and used in everything from buildings to
labour issues by some of the worlds electrical equipment.
largest producers.
The recent 25-day strike and resulting
This clearly has a significant effect on the production losses at the Escondida mine in
cable industry. Some cables are less Chile has also affected price. It costs £2,500
affected than others, however simple cables approximately $2/kg to extract the raw
such as panel wiring, twin and earth, flexs metal from the earth, with further refining Jan Mar May July Sept Nov
and armoureds have relatively high copper costs and drawing costs being added
content compared to the time and to the price. Recently there has been
processes involved in manufacturing them. considerable unrest within the mining the US and Europe as production moves to cable as and when you need it, and leave
workforce who want their earnings related the Far East. the speculating to the London Futures
to the world copper price, resulting in large Exchange. If you have a medium or large
production losses. Analysts are also suggesting that as copper short-term need, it may be worth buying it in
prices have risen consumers are starting to one go - fixing your cost and making the
A closer look at the statistics makes for substitute other materials in its place or most of any quantity discounts on offer.
more encouraging reading. Although become more efficient in their consumption.
consumption of copper has outstripped The real irony is that for years copper We want to help where we can, and be as
supply for the last three years, last year has been mined bountifully, due to its low 'flexible' as possible! We are happy to
the gap narrowed considerably. Research by price and plentiful supply. This made discuss a fixed pricing agreement with you,
the International Copper Study Group looking for substitutes uneconomic, but where cable ordered can be called off over
indicates that next year, based on a this is starting to change. Some cable a pre-agreed period of time. This means you
number of factors, supply may begin to producers are already supplying copper don't have the problems of storage but do
exceed demand, allowing a small surplus coated aluminium (CCA) with or without benefit from consistent prices. Please call us
Let's take the example of a 6491X PVC to build up. the customer's knowledge! In addition, for a chat about these possibilities.
Conduit Wire. Depending on size, this may plumbing applications are now increasingly
have a cost make up of 65% copper, 5% It is important to see the longer term picture moving towards plastic.
PVC and 30% to cover production, in the copper markets, and take into
packaging, distribution and profit. Assuming account that the growing demand in It is unclear which way the market will turn
of course that all other elements remain the emerging markets such as India and China in 2007. There are certainly arguments on
same, it is easy to see that if copper doubles has been offset by the decline in demand in either side. The advice from FS Cables - buy
- New Fire Safety Legislation

Little Also included are technical tables


featuring current ratings, and AWG /
Metric conversion and stranding charts
- 2006 Exhibitions

- Q & A with our


Red Book
Issue 8 of the FS Cables pocket guide
with American, European and UK colour
codes. These can be easily referred to
when you are placing your order, and the
Purchasing Manager

- Editorial from Jon Herbert


is now available in printed form or on handy pocket size means you can take it
CD. This 120 page full colour catalogue with you when you are on site! - Draka FireTuf Data
features technical specifications of
our wide product range, as well as a To order your free copy, please return - External Telecom cables
Belden page finder and a handy guide the enclosed pre-paid reply card or
to LSHF cabling. call our sales team on 01727 828 828.

+++ Metal Prices +++ Metal Prices +++ Metal Prices +++
31st November 31st August 3 Month Change %
COPPER £3,544.56 £4,007.76 - 11.56
ALUMINIUM £1,372.14 £1,276.86 + 7.46
SILVER £7.43 £6.54 + 13.61
NICKEL £17,733 £16,484.96 + 7.57
All prices per 1000kg except silver per oz. Exchange rates apply at time of trade
+++ Metal Prices +++ Metal Prices +++ Metal Prices +++
In Brief Reigniting an old flame
Investors
New fire safety laws came into force on
the 1st October this year, and early The RRFSO reforms 30 year old fire safe
indications suggest that a number of
in people employers are still unaware of the
implications. The Regulatory Reform
We are delighted to announce that (Fire Safety) Order (RRFSO) sets out
FS Cables has been officially recognised as a change in legislation applying to
an Investor in People. It took around a year all non-domestic buildings and
to achieve this prestigious accolade and emphasises a shift in responsibility
involved the efforts of all members of the onto the employer. This means that
company. The net results so far have been business owners will now need to be
very positive, with effects on increased more aware of the mechanics of fire
customer satisfaction, improved staff safety engineering.
motivation, and reduced wastage and costs.
The reform aims to improve public safety by
This is a great achievement for the focusing on fire prevention, therefore taking
company, but we are fully committed to a more pro-active than reactive approach to
continually improving the processes and fire safety.
skills that gained us the Investors in People
recognition in the long term. The implications for the cabling industry are
hugely significant. The reform brings to light
We have a commitment to training the need for effective fire safety systems and
and development within FS Cables, the need for fire alarm and detection
recognising the benefits of people equipment that conform to the necessary
performance to the future of our company. requirements. Clearly, there becomes a
very definite need for appropriate fire
performance cabling to be installed.
The impact of the reforms needs to be

RiserFlex and addressed on two fronts. Firstly, there are the


inherent dangers posed by unprotected

RiserShield combustible materials in concealed spaces,


which can potentially increase the spread
of fire should it occur.
The new RiserFlex and RiserShield range
of cables have been developed primarily
to run alongside power cables due to
their 0.6/1kV power rating. The dual
screened version uses an overall foil and
tinned copper wire braid to reduce both
Latest
radiated and induced interference. Ideal
for running clean supplies to computer
Products
rooms and power in close proximity to
data cables, RiserShield minimises the
effect of high and low frequency
interference.
Draka
RiserFlex is a Low Smoke Halogen Free
FireTuf Data
unscreened, unarmoured version, also
0.6/1kV designed for use in buildings The market for soft skin fire alarm
running under floors, in risers and dry cables is now well established and
ducts. The class 5 flexible conductors in some might say over subscribed!
both cables make installation and routing However it has taken years to develop
easier, particularly in confined spaces. a high performance data cable to meet
the same standards.
Both cables are Low Smoke Halogen
Free throughout and flame retardant Draka FireTuf Data is a totally new product
minimising the risk to both property and which has been developed to meet the
personnel. increasing needs for high speed data
transmission approaching Cat 5 standards.
Building Management Systems (BMS), the event of fire are
CCTV, access controls and traditional local important. The red Low
area networks (LANs) for critical systems Smoke Halogen Free jacket
Cat 6 are increasingly looking for continued
functionality in the event of fire. The cables
also offers excellent flame
retardance, further reducing the
We have recently added the Cat 6 Duct can be terminated using traditional LAN spread of fire.
Grade cable to our product range. Insulation Displacement Connectors (IDC)
making them ideal for use in horizontal FS Cables are the official distributor of
Featuring a heavy black polyethylene backbone wiring systems in offices and the Draka FireTuf range of data and coaxial
sheath and a flame retardant PVC inner public buildings. cables. We have a large amount of both
jacket for easy stripping, the Cat 6 offers available directly from stock. Due to the Low Smoke Zero Halogen
high speed data transfers where The patented design of Draka FireTuf properties of the FireTuf Coax, it is ideal for
underground duct or a weatherproof Data has successfully passed both The FireTuf Coax performs in a similar way use in public, commercial and industrial
cabling solution is needed. The cable has BS5839:2002 and the 3 in 1 enhanced electrically to 75Ω RG59 which is widely environments. We also stock a suitable BNC
an overall diameter of 9.8mm making it BS8434-2 test. It is also fire resistant to IEC used in the CCTV sector. This maintains the connector.
possibly the most robust version on the 60331-23 and is Low Smoke Halogen Free integrity of video signal in the event of fire,
market. throughout. enabling continued monitoring of fire exits For full details of the Draka FireTuf Data
and evacuation routes. Applications also range please visit our website where you
Please call or email our technical sales Applications include airports, hospitals, include video surveillance with digitised can download a full technical specification
team for more information or to request a prisons, high rise office buildings and screening capabilities, for example where sheet. Alternatively please call our sales
datasheet or sample. anywhere that continued transmissions in smoke detection systems are used. team for a quote, or more information.
Covent Garden in 1999 and the Heathrow which is widely used in the CCTV sector. This
Airport fire in 1997 are known to have
spread through buildings via cabling systems
allows continued monitoring of fire exits and
evacuation routes in the event of fire.
Editorial
and act as a sobering reminder of the
ety legislation dangers that exist.
Whilst it is important to recognise the
important part that cabling plays in the
Secondly, there is a need for cabling systems recent reforms, it certainly doesn't end there.
which retain their integrity in the event of an Increasingly, business owners need to
emergency, for safety dependent systems recognise that fire safety doesn't simply
such as alarms, fire detection equipment and begin and end with cable. Of course,
emergency lighting, right down to the installing a LSHF system goes some way to
protection of networks and information reducing the spread of fire, but so often
storage systems. High performance fire safety people overlook the amount of other
cabling systems, once the preserve of large combustible materials that are present and
institutions and data centres are now being the other contributing factors that need to be
seen as strategic investments to protect lives, addressed.
property and vital business assets.
Appropriate cabling can go a long way to
Fumes are the greatest cause of damage to improving fire safety systems and help
electrical equipment in offices, rather than business owners conform to the new
heat or flame. Even if a fire has been legislation. But when it comes to protecting Welcome to Wired from FS Cables.
successfully extinguished, the smoke that your people and your property, don't take Our ambition is to bring you news
has been created can wreak havoc with any chances. from around the industry together
circuitry, even in equipment located a long For more information or to read the with information and updates about
way from where the fire started. Specifying Regulatory Reform (Fire Safety) Order our company.
LSHF cabling can reduce this risk. in full, please visit
Advances in cabling materials have enabled www.communities.gov.uk Being the first edition, I would really
the installation of systems which go a long appreciate your feedback so please
way to addressing some of these dangers. In take the time to fill in the enclosed
light of the new legislation, building owners prepaid reply card and send or fax it
and managers, architects, electrical back to us.
engineers and installers of cabling systems
need to be aware of available options to The average 10 storey commercial We are fortunate to have a great
improve fire safety. building with 100 work stations per bunch of people here who always
One such option is the Draka FireTuf series floor can contain around 1 million feet make meeting your needs their
which is designed to emulate as closely as of cabling in concealed spaces. priority. We operate a ‘no cut off time’
possible the performance of Cat 5. These Where inappropriate cable is used, policy, put simply, if we can ship it,
The threat of cabling systems spreading fires high performance fire survival data cables are
is a real one. A continued build-up of designed to carry on functioning even in the in the event of fire this is the equivalent we will.
combustible cable can add greatly to the event of fire, allowing safe monitoring of of 5,700 litres of petrol.
fuel-load within ceilings, which can cause a Whilst it is always appreciated when
evacuation without putting lives at risk.
fire to reach extreme temperatures, produce Source: Cable Fire Research Association you get your orders over early in the
excessive smoke, and enable fires to spread Where a video signal is carried the coaxial day we understand this isn’t always
throughout a building. The Seven Dials fire in version performs in a similar way to RG59 practical. If you do place an order
late, we will confirm that we can ship

M&E 2006 sector has grown in the past few years,


and the number of building services
visitors only served to reinforce this.
it at the time of booking so you can
receive it the next working day.
Although we really do try hard to
The Building Services Building relationships is a key aspect to our meet your needs I am also realistic
Event 2006 commitment to service at FS Cables.
We are very aware that meeting and exceeding
enough to know we don't always get
customer needs is based on understanding it right. But, please tell me how we
M&E 2006 is the annual building can improve.
services exhibition based at Olympia, the individual and unique requirements of every
London. As one of around 100 We were able to talk to many prospective project. We value our relationships with our
customers and are always looking at new ways
If you have any comments about
exhibitors at the show, FS Cables was and existing customers face to face about
ways we can work together in the future. to better serve their needs. any aspect of our service I would
please to meet many existing and
potential customers to discuss our welcome them either by email or
varied product range. We had a very positive response to the If you missed us at M&E 2006, be sure to by telephone.
show, with many new contacts being check our website for future exhibitions that
Around 6,000 visitors attended what was a made from various sectors within the we will be attending. It would be a great Yours,
very successful two days for all concerned. industry. It was apparent how much this opportunity to meet you.
Jon Herbert
[email protected]
FSC Global Goes to Kazakhstan
FSC Global, the export arm of FS Cables This was the first exhibition we have been to in
exhibited at KIOGE 2006, the premier
exhibition in Kazakhstan for Oil and Gas
exploration and distribution.
Kazakhstan and the furthest away from the UK,
with the stand having to be packed up and
shipped out 6 weeks before the show began.
Special Offers
If you’ve an eye for a bargain be sure to
With 600 exhibitors and around 14,000 One interesting experience was the visit to the take a look at the brand new ‘Special
visitors, there really was something for ambassador residence. The food and drink Offers’ section of our website. Here
everyone, from pipelines and valves to drilling were excellent but the clincher was the Union you’ll find a regularly updated list of
rigs and trucks. We were promoting the range Jack toilet seat! products that we were either over
of marine and offshore cables we stock. stocked on, or cables that are
It’s good to know we are working as a team to discontinued lines. This gives you the
Kazakhstan is a fascinating place with a promote Britain! opportunity to purchase top-quality
predominantly young and female population.
products at hugely reduced prices.
Out of town the scenery is spectacular and Gavin Clements
Be sure to check regularly however, as
beautiful with friendly people and mad drivers! Director FSC Global Ltd.
when it’s gone it’s gone!
Q&A External
With Purchasing Manager Gary Banfield Telecoms
What effect has the current state of What are the biggest problems you
the market had on lead times?
We are definitely seeing an increase in lead
face in purchasing?
The biggest problem we face is the
Wide range of
times at the moment due to the ever unreliability of delivery dates from our
decreasing number of production facilities
within Europe. This is a challenge we are facing
suppliers. It is incredibly frustrating to be let
down in this way, as we pride ourselves on Telephone
but we are working with our suppliers to find our service and delivery. We put great
ways to make them reflect customer needs. emphasis on this, and we need the same
What are lead times running at now?
from our suppliers. Cables in stock
What are you doing about this?
On simple cables, there has been a shift from
around 6 weeks to between 8 - 9 weeks. On We are constantly working to increase our The increasing use of External Telecom
more complicated cables, seeing lead times of stocks to try and insulate the customers cable for private networks has led us to
between 16 - 18 weeks is not uncommon. better from the poor service provided from extend both the range and quantity of
Some heavy power cables and medium/high these factories. In this way we take a cables stocked.
voltage cables are between 30 - 40 weeks. pro-active approach to managing our
Lead sheathed cables are currently running up supply chain and minimise disruption Manufactured in accordance with the BT
to a year. to our customers. Regrettably, some specifications CW1128 and also the armoured
factories have unique production facilities or versions CW1198 in 0.5mm or 0.9mm,
You mentioned that there have expertise so placing the business elsewhere interestingly unlike most cables the conductor
The recent rise in copper price has been closures in cabling factories is not an option. size is measured as a diameter not a cross-
had a large impact on the cable recently? sectional area 0.5mm dia = 0.2mm2 and
industry, how has it affected the How do you maintain the quality 0.9mm dia = 0.63mm2.
Yes that's right. I heard a statistic recently that requirements FS Cable sets?
purchasing department? in a 10 year period, something like 80% of UK
We have comprehensive specifications By far the most popular are the 0.5mm range
While it has risen rapidly over the last 12 cable production has ceased. BICC was of
course the biggest casualty, as well as against which pre-production samples mainly unarmoured (CW1128) often used in
months, it does appear to have stabilised low pair counts for access control and
numerous other smaller cutbacks. can be checked. ISO 9001 also plays a big
recently. We were hardest hit in May 2006
part in both assessing and monitoring security applications, in particular gates on
when the price rose by around 50% in a 6 What impact has this had? suppliers. We also regularly visit the entry phones.
week period.We are taking a longer term view on
factories to ensure we both understand and
copper and realise that the price will bounce A lot of production has been moved to the Far We stock bulk lengths on drums so on lower
appreciate the other party's needs. Our
around over the next 12 months or so. We are East, particularly on more complicated cables pair counts continuous lengths of up to
relationship with suppliers and customers
putting a great deal of emphasis on where the better factories are able to produce 2000m are available, as are multiple cut
are blending into partnerships - ultimately
maintaining good stock levels to minimise the a top quality product. However this has left a lengths. But if you only need a short length
we all rely on each other.
effect on our customers. huge vacuum for fast deliveries on short runs. please give us a call, we almost certainly
have what you are looking for.

LF319 - The LSHF alternative to PVC YY


The demand for Low Smoke Halogen Free
flexible control cables is increasing.
Steel braided types to replace PVC SY are also
occasionally requested. To date, this is
Complaints
Where previously PVC YY Control cables achieved by taking a standard product and
were being used in vast quantities, more braiding and oversheathing the cable in a Low
Here in Britain it is often remarked that we
and more users are starting to see the Smoke Halogen Free compound.
don’t complain enough. At FS Cables we
benefit of specifying LSHF in their place. know it's true – although we send out pre-paid
It is worth mentioning that so far a clear
Hospitals, airports, prisons, and shopping or transparent LSHF compound has yet to "Service Cards" with shipments we get
centres are just some of the larger users be developed so these cables are usually relatively little feedback and even less people
where the benefits of Low Smoke Halogen black or grey. point out our failings.
Free cabling are now widely recognised.
For a few hundred metres this is a quick and We want to know what you think of us, from
Stocked from 2 core to 25 core in 0.75mm2,
cost effective solution, with delivery around 2 when we take your enquiry to when we deliver
1mm2 and 1.5mm2 and up to 10mm2 in
weeks. For large quantities these can be the cable and if we failed to get the order in
lower number of cores, these cables can be
manufactured to order and offer considerable the first place what can we do better next time.
cut to length to reduce your wastage so you
cost savings although they do incur a normal
only buy what you need.
production delay. Enclosed with this issue is a pre-paid reply
The outer jacket is grey as standard, although card with your address already on it, so all you
Screened options with tinned copper wire braid have to do is add your comment and put it in
white or black can supplied as an option.
screens, known as LF329, are also popular the post box. Please let us have your views –
Core identification is normally by white
and are increasingly available from stock. good or bad. Alternatively you can send us an
numbers on black cores, although colour
coding on up to 5 cores can be offered in email at [email protected]
If you would like samples, prices, or to place
some sizes. an order, do call us with your requirements.

Wellington Road, London Colney, Herts, AL2 1EY

General Sales: 01727 828 828 OEM Sales: 01727 744 066
Fax: 01727 824 825 Contractor Sales: 01727 744 077
www.fscables.com Credit Control: 01727 744 063
[email protected] Purchasing: 01727 744 055
Marketing: 01727 744 056

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