Kobe Steel plans to keep the export price of wire rod for cold heading, spring and steel code at coming negotiation for January-March shipment. Some users require price cut when the market price in China is decreasing. However, the firm keeps the price when the firm has no reserve capacity under planned maintenance in the quarter despite of the firm demand from automobile industry.
The wire rod demand remains steady when automobile reaches record level in China and Southeast Asia. However, Chinese market price has been decreasing since spring due to oversupply. The price of Chinese largest wire rod maker, Baoshan Iron & Steel is low at around US$ 750 per tonne. The low and middle grade wire rod price could decrease more. However, the supply is balanced for high grade products including steel code, which is the main market for Kobe Steel. The firm expects firm can get firm order level when US tire makers increase the production level while Chinese buyers indicate potential purchase form the firm to make higher grade products.Japan Steel Scrap Composite Prices (Sangyo Press)
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