Steel Wire Market Price is Projected to Decreases in Next Year

Many dealers forecast common steel wire market price is seemed to drop after the beginning of next year around Tokyo. The market price is weakening when the demand is decreasing by 20-30% from a year earlier. Especially, the shipment of the annealed steel wire was slow, although Japanese makers’ price hike penetrated in the first half of fiscal 2008 at the ended of March 2009. But it is hard for their price hike in the last half of fiscal 2008 when the demand is dropping after September.

Common wire rod makers announced to increase the selling price by 15,000 yen per tonne from October shipping, and secondary steel wire processors embarked on the price hike. However, the processors have never penetrated the price hike. Annealed steel wire market price increased by 50,000 yen per tonne by September from March 2008 when the processors raised the selling price in April and July. They announced to additionally raise the selling price in October shipping, although their price hike is less advanced.

The profit of users for steel wire is worsening by the steel wire processors’ price hike. The market inventory is excess due to business depression for building construction.