Kobe Steel Offers US$ 50/t Hike for Steel Code Wire Rod Export

Kobe Steel tries to increase the export price of special steel wire rod for steel code by US$ 50 per tonne for January-March shipment from October-December. The firm offers the higher price to the buyers when the supply gets tighter in Asian market after adjustment in second half of 2007. The firm eyes another hike for April-June shipment when cost of raw materials including iron ore and coal would increase for the year starting April 2008.The demand of special steel wire rod for steel code increases when automobile output increases. However, more supply cooled the market price when Chinese steel makers expanded the supply capacity. The market is now divided into higher grade and commodity grade in second half of 2007 and Chinese market price started to increase recently.Kobe Steel traditionally negotiates the export price of the special steel wire rod in every half year. However, the firm started quarterly negotiation for part of the buyers including Chinese rerollers for October-December to adjust export volume in order to meet strong domestic demand and to reflect market condition smoothly. The firm increased the export price by US$ 20 per tonne for October-December.