Chinese Wire Rod Price Reaches FOB US$ 535 to Japan

Offer price by Chinese common steel wire rod exporters increased their offer price to Japan by US$ 10 to FOB US$ 530-535 per tonne compaed with late May, according to Japanese large dealer source.

Japanese wire rod processors and dealers expect rising wire rod import price could break decline of domestic market price. But Chinese wire rod price is lower by around 50,000 yen than Japanese integrated wire rod makers. Japanese wire rod processors and dealers anticipate cheaper wire rod makes an impact to domestic market price when Japanese wire rod processors are increasing the rate of use for overseas wire rod.

Domestic wire rod supply was 307,000 tonnes for January-April and the import was 63,000 tonnes, according to Wire Products Association. Domestic supply was 20,000 tonnes in the same period of 2008 and the import was 31,000 tonnes.

Domestic wire rod makers’ supply decreased while the import doubled for January-April 2009 from the corresponding period of 2008. Japanese wire rod processors reduced the selling price of steel wire products by about 30,000 yen per tonne during February-March 2009. Domestic market price dropped for nail or annealed wire.