Japan Wire Rod Export to Increase July-September Shipment

Steel wire rod export by Japanese integrated steel makers would increase for July-September shipment from April-June due to the demand recovery in overseas market. Automobile demand in China is firm while the demand in Thailand and other Southeast Asia recovers. US automobile related demand shows a sign to bottom out. While the export price would decline by about US$ 150 per tonne along with the 15,000 yen per tonne of domestic price cut for integrated purchasing by Toyota Motors, the export volume would increase.

Steel and automobile inventory adjustment almost completed, according to Japanese integrated steel source. Demand uncertainty in US market was the great concern for integrated steels at the beginning of negotiation for July-September. Integrated steel source explains the offer, which seems to be for restocking, increases in July. The source expects that the demand recovers to a level along with real production activities.

Japanese wire rod export price had been increasing from April-June to October-December 2008 due to the surge in raw material price and firm automobile demand. After global recession, the price for January-March and April-June shipment was flat. The price is expected to decline by about US$ 150 per tonne for July-September shipment. However, the volume would increase.

Some export prices of wire rod for construction application increases slightly for July-September shipment. Japanese integrated steels’ hot rolled coil export to South Korea is expected to increase by about US$ 100 from the previous quarter. The price should increase in the near future. Construction related wire rod export decline in April-June. However, the price shows a sign to bottom out.