Carbon steel wire price is flat around Tokyo. The users seek price down after wire rod makers increased the selling price spring 2005. The price is 91,000 yen per tonne for product with 4 millimeters diameter and 83,000 yen for commodity grade product. The price is not likely to increase as long as current easy supply and higher import level. The demand is slow for the major application of civil works while the building demand is firm. The supply side players try to increase the selling price to cover higher cost including subsidiary materials and freight when the wire drawing makers post marginal profit and the distributors have trouble to secure the margin. Cheap steel wire import keeps the high level mainly from China under slow demand. The wire rod import also keeps arriving at cheaper price. The domestic products market price has no power to increase when cheaper processed products with import materials pressure domestic market. Japanese carbon steel wire import increased to 41,000 tonnes in May, which was the highest level in years, according to Ministry of Finance when importers tried to secure materials before the price would increase in China. The import decreased to monthly 18,000 tonnes in July and August after 32,000 tonnes in June. However, some of Japanese interests expect the import could increase again when Chinese market price decreases.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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