Nippon Steel expects Chinese steel wire rod supply is getting tighter when Chinese demand of steel code for tire will surge mainly for high valued products. The firm forecasts the steel code demand will increase to 450,000 tonnes in 2006 and 700,000-800,000 tonnes in several years from 350,000 tonnes in 2005. Especially, high valued steel code demand will increase when Japanese and other foreign tire makers increase the local output. The supply is limited and the suppliers of high valued products are limited to Nippon Steel and other major integrated steel makers. Nippon Steel tries to increase the export price after January 2007 under the tight supply. Nippon Steel produces steel tire code in Kimitsu and Kamaishi works to supply for steel code makers and tire makers at home and abroad. The steel code export for China is one of the main export items for the steel bar and wire rod operations. Chinese steel code demand increases when automobile output increases and tire shifts to radial tire. The higher valued products demand increases when car size is getting larger and automakers try to reduce vehicle weight. Nippon Steel is getting higher order from China and increases the export price since last year under tight supply.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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