Japan Carbon Steel Wire Rod Hike to Impact on Downstream

Carbon steel wire rod makers try to increase the selling price by 10,000-15,000 yen per tonne for October shipment to cover higher cost for raw material when they expect the domestic supply will keep tight after October. The wire processors and the distributors are forced to pass the higher cost price on the reselling price. Nippon Steel increases the carbon steel wire rod by 15,000 yen per tonne for October shipment to cover higher raw materials cost. The firm increases the price by total more than 50,000 yen in the year. Nakayama Steel Works increases the selling price by 10,000 yen per tonne for October shipment and Godo Steel also increases the price. They try to cover higher ferrous scrap cost despite of recent drop when they expect the scrap market could rebound. The rod makers expect the supply could get tighter after October when the high grade steel demand will increase. They try to improve the lower price level than international level.