Kobe Steel Increases High-Carbon Wire Rod Price to Asia

Kobe Steel agreed in export price hike of high-carbon wire rod bound for Asia by US$ 100-150 per tonne for October-December shipment compared with July-September. The firm has raised the export price by total US$ 500-550 per tonne since April. Wire rod demand is strong from automobile components. Some users are offering Kobe Steel to increase the supply volume for January-March 2009 from October-December 2008. The supply keeps tight when the demand is strong from automobiles in Asia. High-carbon and common steel wire rod prices of overseas makers, such as Chinese makers, keep flat for building materials. Kobe Steel only supplies high-grade wire rod mainly for steel code wire. Japanese automobile component makers are enhancing the capacity in abroad due to increasing output of automobile makers. Sumitomo Rubber Group triples the production capacity of tires to 3,400 tonnes per month in Thailand within 2008 from 2007.