PETALING JAYA: Cable and wire manufacturer Southern Cable Group Bhd
(SCGB) is expected to weather the volatility in copper prices through the use of contracts with different expiry dates and fixed volumes, while any tariffs imposed on exports to the United States will either be absorbed by the importers or passed on to end-consumers.
Apex Securities, which recently made a visit to the company’s plant in Kuala Ketil, Kedah, said market concerns over margins due to rising copper prices have been effectively mitigated by its strategic use of multiple London Metal Exchange or LME contracts with different expiry dates, enabling a better hedge against adverse price movements.
