Japan Steel Wire Rod Import Rebounds after 3 Years

Japanese steel wire rod import in CY2009 is expected to rebound since CY2006. The import increased by 4.8% for January-October 2009 from the same period of 2008. The annual import could reach 230,000 tonnes at the current pace. The import volume still remains low during the years since 2005 when the import expanded. Domestic demand stays slow but imported low grade wire rod is gradually penetrating in Japanese market.

The import totaled 193,800 tonnes for January-October 2009, up by 4.8% from the same period of 2008, according to Ministry of Finance. The import is especially increasing from South Korea, which exceeded the import from China for April-June. The import from China turned upward in July while keeps the level almost as much as 2008.

Wire rod import represented year-to-year plus though other carbon steel products showed year-to-year minus for January-October. Wire rod import volume accounts for only 10% in the total import of common steel products at 1.94 million tonnes for January-October. Meanwhile, imported wire rod is used widely for common grade products and makes an impact on domestic market prices of steel wire rod and steel wire products.

Japanese steel wire product makers reduced wire rod import in the first half of 2009 in order to adjust their inventories. Imported wire rod price stays low, which had dropped in early 2009. On the other hand, domestic wire rod price keeps flat since this summer.

Domestic demand for building materials is unexpected to recover in a short term. Wire rod import continues slightly increasing despite of low domestic demand. The import products are steadily penetrating in Japanese market.