Japan Steel Bar and Wire Rod Export Seems to Increase

Japanese steel bar and wire rod export is expected to increase when the overseas demand is growing for high carbon steel and special steel bar and wire rod. The export ratio has been lower than other steel products because there are a lot of productive processes for the users. However Japanese steel bar makers should increase the export when domestic demand maintains slow.

Japanese steel bar makers are currently busy thanks to the demand recovery mainly for automobiles. Kobe Steel’s production is 90% of the peak level in the first half of fiscal 2008 (April-September 2008). The demand for high carbon steel wire rod is increasing used for steel code in China or Southeast Asia.

Nippon Steel’s production of special steel bar and bar-in-coil for export is higher than the peak level in October 2007-September 2008. Sendai works of JFE Bars & Shapes recovered the production to 90% against the peak level.

Japanese car makers have shifted their production bases to overseas. As a result, the overseas steel market is expanding. Japanese steel makers should follow the overseas demand more than ever.