Market price of carbon steel wire products increased by 20,000-30,000 yen per tonne around Tokyo when the dealers try to pass higher cost price after makers’ hike in July. The price reached 148,000 yen for carbon steel wire with 4 millimeters diameter and 160,000 yen for nail with 100 mm length at dealers’ sites. The dealers try to improve the profitability with lower shipment level. The dealers see the buyers accepted the higher price earlier than expected to secure the requirement when the supply is balanced due to lower supply from makers under tight steel source. However, the dealers’ shipment is still slower than a year earlier level when the buyers are still reluctant to build inventory under slow demand. The dealers try to improve the profitability by raising the price level when they are suffered from lower sales volume despite of the higher reselling price. The dealers, however, concern some small sized dealers could withdraw from wire products dealing and some buyers could face liquidity problems.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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