Market price of steel wire products keeps weak tone around Osaka due to low demand. Dealers’ sales remain low. On the other hand, steel wire makers continue to appeal price hike.
The market price has edged down from the peak in autumn 2008. Public investment projects are under the review due to governmental change. Market expectation for demand recovery has stepped back. Common steel wire products are used mainly for building or civil engineering materials. A dealer source said there is no positive substance for demand recovery. The demand is expected to stay low within this year. The market price is 135,000 yen per tonne for nail and 128,000 yen per tonne for annealed steel wire around Osaka. Some dealers’ reselling price or imported product price is lower than other areas’ prices by 30,000-40,000 yen. Several domestic makers and dealers are trying to sustain the price level to save profits. Tokyo Steel Manufacturing reduced the selling price of wire rod in November while other wire rod makers are expected to raise the selling price in or after autumn. Makers’ price hike would be difficult when imported wire rod price or ferrous scrap price dropped.Japan Steel Scrap Composite Prices (Sangyo Press)
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