Weak Galvanized Steel Wire Price, Tokyo

Galvanized steel wire market price is weak at 205,000 yen per tonne for 2 millimeters diameter and 185,000 yen for 4 millimeters diameter around Tokyo. The market price is likely to maintain down trend with low demand. Some dealers expect the demand from building construction or civil engineering could rebound for January-March. Meanwhile, severe price competitions would also emerge.

Dealers’ sales volume is decreasing by around 40% from last year. Their reselling price is decreasing, too. Galvanized steel wire makers continue output reductions along low demand. Both makers and dealers are minimizing their inventories but users are also decreasing procurement as much as the immediate demand.

The market price is closing to users’ offer price. Users are increasing the purchase of imported products, those which are cheaper than domestic products. Dealers are afraid of even lower market price when their financial positions are worsening.