Chinese Common Wire Rod Export Price Keeps Downtrend

Chinese exporters’ offer price for common steel wire rod is declining to around C&F $550 per tonne for arrivals at Japanese quays in mid October, according to Japanese trader source. Chinese offer price is expected to maintain downward for a while. Inventory seems increasing at Chinese wire rod makers. Chinese wire rod export price kept uptrend by early August but turn downward in mid August. Japanese domestic market price may be impacted by the price down.

In Japan, the market prices of common steel wire rod and common steel wire products are expected to bottom out and rebound, since Tokyo Steel Manufacturing raised its selling price for wire rod and rebar for September contracts. However, domestic price upturn may be delayed if imported wire rod price continues to decline.

Demand keeps weak for steel wire products. Japanese makers and distributors are concerned how degree their sale volume recovers despite of yearly demand season of autumn. Makers’ price hike seems especially difficult for nail and welded wire mesh, for those which imported wire rod is highly used and domestic market prices turned down earlier than other wire products. Wire product distributors are watching domestic makers’ price policies for wire rod, rebar and wire products.

Imported wire rod price declined in advance of domestic market price. In the first half of 2009, wire product market price dropped by 30,000 yen per tonne only in a month. Japanese market price is expected to keep the certain level but the impact by imported wire rod is unforeseeable.