Chinese Wire rod Export Price Drops by US$ 40/t to Japan

Japanese large dealer source said Chinese offer price for common steel wire rod is lowering to FOB US$ 590 per tonne, down by US$ 30-40 from FOB US$ 620-630 after Chinese New Year holidays. Chinese wire rod market price is decreasing and the export price is impacted. Meanwhile, Japanese wire rod import is low when Japanese wire processing makers have excess inventory against shipment volume. Their imports may increase if Japanese wire rod price keeps relatively high level.

Chinese wire rod export price was above FOB US$ 1,000 per tonne in summer and higher than Japanese wire rod price. But Chinese wire rod price is decreasing due to lower demand and steel market price.

Japanese large dealer source said Chinese exporter offered FOB US$ 520-570 per tonne to Japan in December. The offer price was even cheaper than present. The latest price is lower by more than 40,000 yen per tonne compared with Japanese wire rod price.

Japanese processing makers’ wire rod inventory keeps high with demand decline after August 2008. They are unlikely to increase the import of Chinese wire rod as long as they continue inventory adjustment. Japanese wire rod makers are trying to maintain the selling price. Chinese wire rod is used for nails or welded meshes in Japan.