Lower China Wire Rod Offer Price to Japan

Chinese export offer price of carbon steel wire rod decreased to CIF US$ 570-580 per tonne to Japan, which is US$ 70-80 lower than mid-August level, according to Japanese trading firm sources. The price trend is uncertain when Chinese suppliers also try to find the next trend.

The Chinese offer is as low as the level in late June when Chinese domestic market price decreased recently. The lower import price could impact on Japanese market.

Japanese wire rod import was 22,334 tonnes in July, which was 1.3% higher than a year earlier and 8.5% lower than June, according to Japan Iron and Steel Federation. The import is relative high compared with the domestic makers’ shipment. The higher import share has more impact on the domestic market under slow demand.

Tokyo Steel Manufacturing increased the selling price by total 5,000 yen per tonne for wire rod for August and September order. However, lower import price could impact on domestic price of wire rod and wire processed products.