Weak Galvanized Steel Wire Price in Tokyo

Galvanized steel wire market price is weak at around 185,000 yen per tonne for products with 4 millimeters diameter and around 205,000 yen for 2 mm products around Tokyo. The price could decrease more due to slow demand while the positive factors could support the price when Tokyo Steel Manufacturing increased the wire rod selling price by 2,000 yen and international market price increases.

The price is expected to keep weak in August while the dealers expect the demand would recover in and after September. The drawers expect the operation rate could keep around 50% for a while and the dealers also expect the shipment and reselling price would keep weak.

Carbon steel wire rod shipment decreased by 40.7% to 47,000 tonnes in May from a year earlier, according to Japan Wire Products Association. Ministry of Economy, Trade and Industry reported galvanized steel wire output decreased by 55.5% to 5,000 tonnes.

The dealers try to keep the reselling price level to secure profitability but most of them expect the slow shipment will continue. The industry consensus indicates the market price is likely to keep week.