Japan Steel Wire Price Keeps Edging Down

Japanese common steel wire product market price is expected to keep edging down after April. The market price decreased by 8,000-10,000 yen per tonne from the peak in fiscal 2008 (Apr08-Mar09). The inventory adjustment by makers and dealers would delay due to slow shipment. Users are likely to continue holding off the buying when steel wire rod price is unforeseeable in near future.

Annealed wire price decreased by 3,000 yen to 155,000 yen per tonne around Tokyo and by 3,000 yen to 154,000-155,000 yen around Osaka at the end of February from a month earlier. The market price decreased by 10,000 yen per tonne from the peak in last year.

Imported wire rod price is decreasing, mainly from China, since the end of last year. Cheap imports impact domestic wire rod price. Japanese wire processing makers reduce their selling price of wire products by using imported wire rod.

A dealer source said inventory adjustment is expected to finish in early May or June-July. A wire processing maker said the maker halved the operating rate from the beginning of this year and may decrease the rate to 40% temporarily. Users are requesting price cut to makers with an anticipation the price could fall more under slow demand.

H-beam market price decreased by about 40 % from the peak in last year, but the wire products price decreased by 3-5%. Wire products market price might decrease due to cheaper imported wire products.