Weak Carbon Steel Wire Price in Tokyo

Carbon steel wire market price is weak at 145,000 yen per tonne for high grade wire with 4 millimeters diameter and at 137,000 yen for standard wire around Tokyo. The price could keep weak under very slow demand when the buyers minimize the purchase volume though the period is usually demand season. The lower price expectation is partly due to potential price cut by wire rod makers after price down settlement for iron ore and coking coal.

The demand decreases when the processor, dealers and users are still middle of inventory adjustment. The wire makers’ operation rate, which is around 50% of a year earlier level, is expected to recover when the inventory adjustment finishes but the adjustment could take more time.

The steel wire import increased by 71.8% to 1,508 tonnes in January from December, according to Ministry of Finance. The import volume is relative smaller than galvanizing wire and nail. However, the higher import could impact on the domestic market despite of lower shipment by domestic wire makers.