China Cuts Wire Rod Offer by US$ 30/t to Japan

Chinese carbon steel wire rod offer decreased by around US$ 30 to C&F US$ 510-530 per tonne to Japan for mid-November delivery compared with mid-September price level, according to Japanese trading firm sources. Japanese industry interests expect the import price decrease could continues through the month while Chinese move is still uncertain after National Day holiday. Some with pessimistic view concern the import price could keep decreasing through the year.

The lower Chinese import price could impact on Japanese market price of wire rod and wire processed products. Chinese import price kept decreasing since mid-August while Japanese industry expected import price could increase in late 2009 lifting the domestic market price for mesh products, for which Chinese wire rod is used at higher portion. However, the domestic market price shows no sign to recover under very slow demand.

Baoshan Iron & Steel of China reduced the hot rolled coil price for domestic market for November as October. Japanese industry interests expect Chinese building demand will keep strong while Chinese manufacturing activity shows sign to slow down. The situation in China could impact on Japanese market for wire rod and wire products.