Chinese Steel Wire Rod Price Expected to Rise

Carbon steel wire rod market price is expected in the upward trend in China when iron ore spot price keeps high and ferrous scrap price shows an upsurge sign, according to Japanese wire rod maker sources. Chinese domestic demand for steel wire rod is strong from building construction and civil engineering. Meanwhile, some sources point out Chinese wire rod supply seems still excess.

Japanese market price of steel wire products is likely to keep the gradual downtrend for a while. However, the market price may hit bottom if Chinese wire rod price rises. Most of Japanese steel wire rod import comes from China.

Japanese domestic demand wouldn’t rebound for wire rod and steel wire products in a short term. Makers’ and dealers’ shipment is likely to keep relatively low for February-March despite of the demand season from civil engineering.

Steel wire product makers seem to increase cheaper wire rod import for cost reduction. Japanese wire rod price remains high and price competition is severe among dealers.

Japanese market price of wire rod and steel wire products was expected to rebound in autumn 2009 by rising import price of overseas steel wire products. But, actually, Chinese steel wire market price dropped in August and stayed low.