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Issue 2 Spring 2007 |
In this issue! |
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Click to go directly to an article |
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| - Is China a threat or a bonus for the cable industry? | - Copper - What next? |
| - LSHF - Seeing through the smoke | - Lutron Cables |
| - Transducer Cables | - Whipping for cable thieves? |
| - Editorial with Jon Herbert | - In Brief |
| - Q&A with Contractor Sales - Lee Ypey | - Industry News |
| - ISO 14001 - Environmental Management | - Feedback |
| +++ Metal Prices +++ Metal Prices +++ Metal Prices +++ Metal Prices +++ Metal Prices +++ Metal Prices
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| 20th April | 29th December | 4 Month Change % | |
| Copper | £4,014 | £3,206 | +25.19 |
| Aluminium | £1,412 | £1,455 | -2.95 |
| Silver | £6.94 | £6.56 | +5.79 |
| Nickel | £25,238 | £17,461 | +44.54 |
All prices per 1000kg except silver per oz. Exchange rates apply at time of trade. |
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+++ Metal Prices +++ Metal Prices +++ Metal Prices +++ Metal Prices +++ Metal Prices +++ Metal Prices |
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An ever increasing array of products is now coming into the UK from the Far East. Although bras have been hitting the headlines in the recent bra wars, the effect of cable imports from around the world has devastated the UK cable industry with an estimated 80% of production capacity lost in the last 10 years. |
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Some would argue that UK manufacturers had become complacent, trying to distance themselves from customers by putting ever increasing layers of wholesalers and distributors between them and the end user. The need for profit from the big wholesaler chains has resulted in them looking abroad for competitive pricing whilst continuing to beat down the manufacturers until it becomes no longer viable for them to continue producing in the UK. |
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Of the few that do remain, most are global players sometimes sourcing products from afar and acting as manufacturers / distributors with no stocks and long lead times for products that are deemed not cost-effective to produce in the UK by the ‘bean counters’. It’s a sad reality that price and not service is becoming the focal point for many producers today. How different things could have been if the question was ‘when do you need it’ as opposed to ‘how cheap do we have to be?’ Ultimately the question we are now faced with is ‘can we live without China and the Far East?’ |
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The answer is an emphatic ‘no’. If you take Category 5 structured wiring cable for example, there are very few manufacturers left in Europe willing to make it. This is in part due to prices dropping so low two years ago that several manufacturers simply diverted production capacity to more profitable lines or closed factories altogether. Certainly, some big names still sell their branded product but much of this is of Far Eastern origin that has been badged. |
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Recently, prices have roughly doubled (partly down to copper) and the profit has come back, this time for the Chinese. Sadly, many of the European producers are unable to gear back up to making these products leaving the market vulnerable. The range of products coming from the Far East is increasing but mainly concentrates on cables with a high labour content either in production or reeling. Certainly the quality offered by the best factories is excellent, with consistency, packing and reliable deliveries all adding to the service. The worry centres on an increasing dependency. The rapid price rises last year brought about by the soaring copper market found prices going up by as much as double the amount needed to cover the copper rise. Profiteering, or the realisation that the West had little option but to accept these price increases meant that any resistance was met in many cases with a ‘take it or leave it attitude’. |
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It is vital we keep production capacity in Europe even if we can’t keep it in the UK. At the moment, power cables appear to be safe, due to their bulk and high transport cost with relatively little, other than a few small booklet armoured cables, coming in from China. India has been waiting in the wings for 15 or 20 years now but as yet quality issues have held them back. Don’t count on that lasting much longer however, as they have a well educated workforce who will soon want a slice of the European market for themselves. But it is also the manufacturers responsibility to look beyond price and meet the needs of the customer in both service and product quality. We don’t want to see import restrictions on cables like the bra wars of 2006. |
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After ending 2006 at well over £3000 per ton, copper fell back to around £2600 in mid February 2007. Since March it has steadily climbed to over £4000 – a rise of over 50% in just 8 weeks. It is quite possible that the previous high of £4600+ of last May will be exceeded. |
Some of the downturn early in the year was due to reasons ranging from the slowdown in housing developments to the Chinese New Year. China's consumption in March 2007 has increased by more than 60% to around 310,000 tons compared with March 2006. The LME stock of copper was the lowest since December 2006. All this is likely to push prices even higher in the short term.The rise is partially due to speculators rather than increased demand, although this still has the same impact on pushing prices even higher. Our advice is, if you can predict your requirements you may be able to agree a fixed price for a bulk quantity and then call it off over a predetermined period. If this is of interest please call us and we can discuss it with you. |
With the increasing demand for ‘safe’ buildings, more attention is being paid to the types of cables being installed, and the potential risks in the event of fire. It is now recognised that smoke and poisonous fumes are often a far greater risk to life and property than the fire itself. |
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The main problem facing specifiers is the confusion over terminology and standards. Is LSHF better than LSOH? Is LSF the same as LSZH or RP? These terms are all widely used within the cable industry. PVC: problems and perils When standard PVC burns it gives off a number of poisonous gases in particular hydrogen chloride (HCl), which, when combined with moisture forms hydrochloric acid. The damage caused by burning PVC is two-fold; firstly, dense smoke will obscure exit routes with fumes choking people. The second and less recognised problem is that the acid gas produced in the fire permeates electronic equipment, settling on and corroding printed circuit boards and over a period of time can cause random, unpredictable failure. |
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This won’t just affect computers, it will also damage security/access control equipment, building management systems, lifts and just about anything else with a circuit board. The fire may have been extinguished within minutes with no great risk to life but the damage to equipment may be colossal. Reducing the risk – the options There has been a shift in recent years to using newly developed compounds that emit less of the harmful gases, particularly halogens, but still perform well in other respects. The cheapest alternatives are modified PVC’s - these are termed RP (Reduced Propagation) or in some cases LSF (Low Smoke and Fume). The difficulty for the cable buyer is that there are no specific standards for LSF cables. Ordinary PVC emits approximately 28% HCl, whilst modified PVC could give off a massive 22% HCl and still be sold as LSF. If you want to be absolutely certain of what you are installing you should insist on a cable that uses insulation and sheathing materials that do not emit any Halogens and have reduced smoke emission properties. These are termed LSHF (Low Smoke Halogen Free), LS0H, LSZH (Low Smoke Zero Halogen) or sometimes OHLS (Zero Halogen Low Smoke). These products must emit no more than 0.5% HCl. Also, don’t accept standard PVC cables over-sheathed with an LSHF jacket or cables with PVC insulation. When the jacket burns through, the PVC inner sheath or insulation will give off poisonous gases in just the same way as if the LSHF jacket wasn’t there! Another common misunderstanding is that LSF or LSHF cable is also flame retardant. This is not necessarily true. The cables may spread the fire even though minimal fumes are being emitted. In mainland Europe, polyurethane is popular as it emits very low levels of smoke and fumes. Unfortunately in its standard form it burns ferociously and can drip burning material onto anything below with the potential to rapidly spread the fire. There has been a recent move towards flame retardant varieties known as FRNC (Flame Retardant Non-Corrosive). |
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Counting the costs As with most developing products, the durability of new safer compounds is improving all the time with cost penalties reducing as the market grows. LSHF compounds are approximately 2 - 3 times more expensive than PVC and many are considerably slower to extrude, with resulting production costs being substantially greater. Combine this with the much smaller demand for LSHF cable and you can begin to appreciate why they cost more. However as the market grows the prices will fall. Standard products such as conduit wiring 6491 and booklet-armoured cables are now more readily available in Low Smoke Halogen Free versions than PVC in some areas. |
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Why confusion occurs To add to the confusion, some power cables, in particular BS6724, are LSHF. However, some manufacturers class and even print them as LSF. This also extends to some BS5308 cables. Great caution is needed when buying or specifying data cables particularly American or European. Belden style data cables are now widely used in buildings for security, access control and building management systems. Specifying – the guidelines First and foremost be sure to get written confirmation that the cable is halogen free, which means both insulation and sheath. Don’t accept terms like LSF as they can be meaningless. Also confirm the availability of the product and take into account the manufacturing times and minimum production quantities should it be a non-stock item. Contractors are increasingly being asked to complete jobs within a month, when the production time to make the cable may be 6 – 8 weeks or longer! Appropriately specified, most of the popular types are stocked in Low Smoke Halogen Free alternatives, manufactured to extremely high standards but with none of the risks associated with standard PVC cables. A specialist distributor should be able to provide the product with the appropriate certificate of conformity. The ultimate LSHF non-combustible cable with a tough but highly flexible jacket with good ageing characteristics and resistance to water, oil and solvents is still to be developed. However with careful selection the most important factors can normally be catered for. At FS Cables our LSHF cables are Low Smoke Halogen Free throughout. Of the very few LSF cables we sell, these should be viewed as only slightly better than PVC in the event of fire. You can view our range of Low Smoke Halogen Free cables by clicking here. |
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With the emergence of modern building management systems as standard in many new developments, the need for safety is obvious. At FS Cables we supply LSHF alternatives to the Lutron range of lighting control cables. In installations where evacuation may be difficult, such as hospitals, airports or prisons, specifying LSHF cable in place of PVC can greatly reduce the risk to both people and property. |
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Lighting control systems can be used to maintain ambient light levels depending on for example, detected movement or how much natural light is shining through a window. In the current climate, where we are becoming more and more conscious about our impact on the environment, the need for energy efficient lighting is growing. |
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Systems such as these can considerably reduce the amount of electricity used, with considerable cost savings. For example, you could set lights to switch off when someone leaves a room, or when enough natural light was present. Lutron are the market leader in lighting control systems such as these and we are pleased to be able to supply LSHF alternatives to the standard PVC Lutron type, as well as the genuine Lutron PVC cable if required. The 18/22LCCH is designed for use with the Graphik Eye 3000 lighting control system, and is available in LSHF, Duct Grade or Armoured (SWA). It consists of a power pair of 18(7)AWG tinned copper strands with red and black polypropylene insulated cores, running alongside a screened data pair of 22(7)AWG tinned copper strands with purple and white polypropylene insulated cores. |
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These cables are stocked in long lengths which can be cut to your requirements, saving wastage and reducing your costs. They come in blue as standard in the LSHF version, or in black for Duct grade and Armoured (SWA). Other colours can be made to meet your specific needs, subject to minimum order quantities. Click here to view our range of Lutron cables. |
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It was a headline that certainly caught our eye. On a recent holiday to Malaysia, Sharon, our financial controller bought a copy of the New Sabbah Times featuring the front page news of the rise in cable and copper theft. Having been broken into twice in the last few months, with the police powerless to take action, we can definitely identify with the frustration and would support greater penalties – although whipping may be a little difficult to get past the politicians! You can read the full article online by clicking here. |
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| Transducer cables are designed specifically for connecting to load cells or sensors that may be used in hostile environments to monitor movement, loads or stresses. |
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Many applications are outdoors or in tunnels where the cables are often exposed to significant levels of physical abuse or rough handling. Used to relay signals or data back to a central monitoring point, these cables are often clipped to buildings or left in the ground for many months if not years. Monitoring ground or building movement is essential on many civil engineering projects, not just the large ones such as Heathrow, but many smaller lower profile jobs as well. Other uses include linking multiple load cells together to enable weighing of large objects ranging from cars to aircraft. The cables are designed to cope with their hostile environments. Polyurethane is used as a jacket material as it is incredibly tough and is resistant to oils and solvents as well as water and the cold. Most of the cables are screened using either an aluminium and polyester foil and a drainwire or a high coverage tinned copper wire braid. This reduces the effect of electromagnetic or radio frequency (RF) interference. |
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Standard stock cables come in black, grey or high visibility orange, but many customers want specific colours such as yellow, green or blue. If you have a need for a custom designed and manufactured product you may be pleased to know minimum order quantities may be as little as 3km and we can even print it with your name or identity code free of charge! Delivery will normally be around 8 weeks from the time of order. Click here for more information. |
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What is the contractor sales team? A team of four people was set up six years ago specifically to look after the needs of contractors and installers within the UK. As well as me, we have another Lee – Lee Girdler, Lynn Hammond and Sarah Flint. What is different about the contracting team? I guess we have a more direct approach. We deal a lot with guys on site who want to place an order with minimum hassle – we try hard to meet their needs. |
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What’s your greatest strength? |
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We have around 35,000 sq ft of warehouse and as our company name - Flexible & Specialist Cables suggests, we stock many of the more unusual products – some in hundreds of thousands of metres. This gives us the opportunity to respond very quickly to both large and small requirements. How quickly is quickly? Call and collect is probably the fastest, which can be as quick as ten minutes to pick the product and do the paperwork – just time for a cup of tea! This isn’t always convenient for customers so we have a reliable bunch of couriers, mostly owner drivers, who can deliver within a few hours, depending on the distance, and at a reasonable price. The most popular is our standard next working day service for parcels, drums or pallets. We use Target and a specialist pallet network that have proven to be remarkably reliable – touch wood! What is the biggest challenge facing the contracting team? Probably the biggest challenge is the specialist range of products – we don’t sell booklet-armoureds or twin and earth so we are reliant on people remembering us for the more unusual cables. This isn’t so relevant with specialist installers where we play a much bigger part in the supply chain. It is frustrating when we see orders from other distributors or wholesalers for delivery direct to xyz customer who has an account with us. What about FS Cables holding stock for customers? This is increasingly popular, particularly with contractors at the start of a project or where installers are using the same types of cable all the time, but don’t want to hold big stocks themselves. In these cases we agree a price and quantity with the customer and then hold it to be called off over an agreed timescale. It also means we can cut cable to length to reduce wastage on site. What sets you apart from other distributors? Apart from the products we sell it’s the care we all take – not just here in sales but throughout the company. We don’t have a cut-off time for orders – if we can ship it we will, and I can’t remember a time when an order wasn’t sent out on the same day it was supposed to be. This takes real commitment from everyone. Do you only deal with established account customers? No, a lot of the business is with the big contractors but a significant amount comes from small ones, even one man bands, particularly where they specialise in installing a particular type of machinery or equipment. You don’t even need to have an account to deal with us, we take most credit cards or you can always pay on proforma. What are your largest and smallest orders this year? So far it’s just under a quarter of a million pounds, down to about twenty pounds. We try to give outstanding service whatever the value, but it’s a great feeling when you’re awarded a big contract. Do you ever get to meet your customers? Not as often as we would like to, but we do go to exhibitions and occasionally out to sites. To be honest, we’re not all that good looking! I’m probably more used to dealing with customers with a phone in one hand and a computer in front of me. I would just like to say thank you for all your business, we all really appreciate it. |
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A big thank you to those who left us comments on the reply card for the winter edition of this newsletter. We had an overwhelmingly positive response and were delighted to read your feedback, please keep it coming. Trying to incorporate some of your suggestions into future editions will be interesting, but as tempted as we are, it is unlikely we will ever be able to include a TV guide and a sports page! A number of readers also requested to receive a copy of our Little Red Book on CD. We have plenty more available for those of you who find it more convenient to view it this way. The number of requests to receive the newsletter by email was also very encouraging and contributes well to our greener approach to business. Please visit www.fscables.com/newsletter.php to sign up, or tick the box on the pre-paid reply card enclosed with this issue. |
Welcome to turbulent times. After what was generally regarded as a great year for the cabling industry 2007 has started rather shakily. Copper is dominant factor with the price falling and now starting to recover. If you are buying power cables there are some great deals around at the moment, with distributors clearing stocks that were purchased when copper was high - even if it means taking a loss. Cleveland Cables in particular are passing on savings brought about by the drop in copper price. It will be interesting to see if prices start moving back up again to follow the copper rises but for the moment if you have a decent enquiry for armoured cable you could make some real savings. Just be careful not to slip on the blood! |
| Industry awaits impact of Chinese RoHS |
The industry is bracing itself to see what impact the China RoHS legislation will have on Europe, which differs significantly from the EU directive in terms of scope. While it is similar in terms of the 6 hazardous substances - lead, mercury, hexavalent chromium, cadmium, and two flame retardants – with the implementation date of March past us now, we are yet to see clear guidelines for compliance. Product types not covered under the EU regulations may fall within the scope of China RoHS and vice versa, inevitably leading to confusion. By way of advice, analysts are suggesting companies continue to keep abreast of developments, and not to assume that compliance with EU RoHS will result in compliance with China RoHS. For more information visit www.chinarohs.com. |
'WEEE still don't understand!' |
Many UK companies are still facing confusion over the upcoming WEEE directive, which has been branded vague and lacking in scope. Firms involved in manufacturing or selling OEM parts are most likely to be affected by the new legislation, but where do you draw the line at producer responsibility with so many links in the supply chain? Conflicting advice on compliance has not helped readiness for this issue, which comes into force fully on July 1st. Companies who are defined as producers of electrical equipment covered by the new regulations are expected to have signed up to a compliance scheme but confusion still remains as to where the final liability falls. |
Speaker Cables! PVC or LSHF - They both sound great! |
Big stocks of the popular Hi-Strand OFC speaker cables are available for next day delivery. The Low Smoke Halogen Free versions are proving to be very popular with pubs, clubs and fitness centres. If you would like more information or a sample please call us, or click here. |
At FS Cables our objective for this year is to make significant reductions to our impact on the environment. It was one of our contracting customers who suggested attaining ISO14001 status. Work on this is well underway, with many good ideas coming forward from our staff. We hope that by achieving this environmental award, we can make significant steps in 2007 to protect our surroundings for future generations. We have also signed up to the Paper Planet recycling scheme, which deals with all of our office based materials such as paper and plastic. It is a daily reminder that everyone within the company has their part to play, and we are encouraging staff to be more environmentally aware in their lives, both at work and outside work. |
One thing you can rely on in business today is change. It sometimes appears we have two choices – either change and adapt or die. The latter is clearly less appealing so we’ve decided to change and adapt. |
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But have we got it right? Some years ago we predicted the end of the FS Cables printed catalogue, yet since then we’ve produced two further editions with a print run of twenty thousand each! Whilst the internet is a massive step forward it simply isn’t practical or appropriate for a lot of people. This is also reflected by the readers who asked to receive this newsletter electronically which although encouraging, still leaves about 95% requiring it in printed form. Stock is another area where we need to be one step ahead. For this we are very reliant on customers. If we find a particular system or application is using a certain style of cable we will often put a trial batch of 3 or 5km into stock. Many of these speculative stock items then turn into regular and major product lines. |
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We invest a huge amount in stock and aim to keep many of the more unusual products as well as large quantities of fast moving products. If we can sell a cable in 12 or 18 months we’ll put it into stock. This bodes well for the future but we have to be aware of the dangers of obsolescence. Data cables in particular are regularly superseded and, just like last years' fashion, only have a limited appeal. Thank you for your feedback to the last newsletter and also for all the business you have given us in 2007.We never forget you have a choice. Yours, |
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