Annealed steel wire market price is flat at around 165,000 yen per tonne for product with 4 millimeters diameter around Tokyo. The dealers cannot pass the higher cost price on the market while they get high priced delivery from the makers. The price could keep the level in the month when the dealers’ shipment keeps slow under lower building activity.
Small construction companies and processed metal retailers increase the pressure for lower price on the wire dealers when ferrous scrap price keeps the low level. However, the wire dealers try to keep the price level when the makers increase the processed steel item. The dealers now seek price down for the wire processing makers to reflect lower scrap price. Such backward move could reach wire rod makers. The slower demand prevents the wire market price from increasing while the dealers still keep the margin with lower priced inventory. The price could keep the level with conflict between supply side pressure for higher price and buyers’ downward pressure.Japan Steel Scrap Composite Prices (Sangyo Press)
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