Weak Steel Wire Products Price around Tokyo

Carbon steel wire products price would decline around Tokyo. The market price is around 190,000 yen per tonne for galvanized wire with 4 millimeters diameter and 155,000 yen for annealed wire while the price is 145,000 yen for high grade steel wire. The shipment of wiredrawing makers and dealers would remain low though the market sources expect that the price would not drop significantly. The market price would change with small range with unforeseeable wire rod price trend.

The dealers reduce a commission to secure the order under the low demand. They expect the shipment increase slightly after consecutive holidays in May. However, they have no clear evidence and a dealer source estimates that inventory adjustment finishes after May.

The makers reduce the output by around 50% from a year earlier. Low shipment would remain while some makers’ stock rate is proper. One maker source estimates the makers need to stop the operation temporally during April-September when the users’ output would not increase until July for the adjustment.

The makers set the price unchanged when both integrated steels and electric furnaces steel makers don’t reduce wire rod price. On the other hand, wire rod import increased more than double to 15,538 tonnes in February from a year earlier, according to Japan Iron and Steel Federation.

The wiredrawing makers, which make the products from imported steel, reduced annealed wire price by 30,000 yen per tonne in February. The dealer sources forecast the price would not decline by more than 10,000 yen per tonne for a while when the makers said they cut the price too much. However, the market sources concern about increase of import of wire rod or wire products.