Japanese Wire Rod Import Increases by 12.5% in F2008

Japanese carbon steel wire rod import increased by 12.5% to 248,781 tonnes for fiscal 2008 ended March 2009 from fiscal 2007, which showed year-to-year increases since fiscal 2005, according to Japan Iron & Steel Federation. The domestic shipment was in significant drop for fiscal 2008 from a year ago due to the stagnancy of civil engineering and construction. However, the imported rod increases its Japanese market share due to the lower price than domestic rod. Overseas wire rod price is apparently about 50,000 yen per tonne lower than Japanese price. Japanese market sources concern increase of the import when the market price of carbon wire products drops due to the lower transaction price for some products, which is made from imported rod or imported fabricated products.

Japanese wire rod makers set the rod price unchanged. On the other hand, import of overseas rod or wire products maintains relatively high compared with stagnant domestic shipment. The wire products made from overseas wire rod is more than 50,000 yen per tonne lower than domestic rod using products processed by domestic drawer. Imported products price is even lower than which fabricated by Japanese drawer from overseas material. Japanese wire products market price is likely to decline due to the share increase of low priced imported rod or products.