Japanese Wire Rod Import Price from China in Unlear Trend

Japanese import price of carbon steel wire rod from China is unclear with positive and negative factors. A large dealer source said Chinese wire rod makers’ offer price keeps flat at around C&F US$ 520-530 per tonne compared with mid November despite of wide price range. Domestic demand for wire rod is firm from construction and civil engineering in China. Meanwhile, wire rod makers’ output seems excess. Japanese import price bottomed out but still remains weak.

Chinese wire rod makers’ offer price peaked out in mid August and lowered by US$ 100 or more to around C&F US$ 500 per tonne until mid November. The makers’ domestic selling price turned upward in late October but currently represents the unclear trend.

Japanese wire rod import was 12,334 tonnes in October, up by 7.1% from a year earlier and by 17.6% from September. Japanese wire rod fabricators are likely to increase the purchase of imports cheaper than domestic products.

Steel wire market price is weak around Tokyo. Some dealers eamine to reduce the reselling price for late December. Dealers’ sales volume is decreasing by about 40% from a year earlier. Many dealers expect the market price doesn’t rebound for a while. Some dealers are suffered from losses caused by high cost price and low reselling price for some items.