Domestic Steel Wire Rod Price to Lower for Apr-Jun, Japan

Japanese common steel wire fabricators eye how domestic wire rod price fluctuates in and after April. Price gap has widened between domestic and imported wire rod because imported wire rod price has decreased since the beginning of this year. Wire rod users and dealers expect domestic price could lower. However, it is unclear when and how much Japanese wire rod makers revise the selling price. The price could be settled during April-June.

Japanese wire rod makers had raised their selling price twice during the first half year of 2008 by total 50,000-60,000 yen per tonne. The makers announced additional hike in and after October 2008. However, the price hike hasn’t penetrated enough due to demand decline and price down of other common steel products.

In Japan, market price of common steel wire products hasn’t dropped as widely as other common steel products. The price down range is maximum 10,000 yen per tonne from the peak. The reason is that Japanese major wire rod makers sustain the selling price unchanged.

Meanwhile, wire rod price is less than $550 per tonne for imports from China. Some sources said imported wire rod price is almost as half as domestic price. Additionally, Tokyo Steel Manufacturing set its wire rod selling price at 61,000 yen per tonne for April contracts though the firm’s market share is very small. A Japanese dealer of wire products said Japanese wire rod makers should review their selling price soon with these factors.