Japanese steel wire rod importer receives fewer orders for Chinese carbon steel wire rod from Japanese steel wire products makers. Despite the increase in Chinese wire rod price, the wire drawers are reluctant to increase the import due to weak demand in Japan, according to a trading firm source.
Chinese carbon steel wire rod offer price was C&F US$ 630 per tonne to Japan as of second week of August, which was US$ 30-40 higher than the level in early July. The price is increasing when Chinese steel makers try to improve the profitability while raw material cost increased. Japanese wire drawers are reluctant to import the wire rod and the trade firm has no space to stock the wire rod due to the weak demand. The wire rod import increased by 75.6% to 89,487 tonnes in April-June from the same period of 2009, according to Ministry of Finance. Japanese wire products makers increased the import while domestic wire rod makers increased the selling price and export tax refund was expected to reduce by Chinese authorities, Japanese wire rod maker source said. The import would decrease to less than 20,000 tonnes per month after August, according to the rod maker source.Japan Steel Scrap Composite Prices (Sangyo Press)
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