Japanese Wire Rod Export Slacks for Jan-Mar

Japanese high-grade wire rod export to Asia is braking though which kept high level. Japanese integrated steel makers can’t conclude export contracts for January-March shipment since the users are adjusting their inventories. In addition, overseas users strongly request the price cut for building material applications. Japanese wire rod export price for automobile components has surged by US$ 100-200 per tonne every quarter since April-June 2008. However, the export volume and price are expected to keep low in a short term due to the demand downturn.

Japanese wire rod makers can’t prospect when the users finish inventory adjustment. Wire rod makers are unable to forecast the export conditions. The export volume and price are unclear for April-June shipment due to uncertain raw material prices. Japanese wire rod makers expect the export could rebound in autumn 2009 if steel product price is fixed for fiscal 2009 starting April.

Japanese wire rod export increased by 7.6% to 447,952 tonnes in 2008 from 2007 while decreased by 15.3% to 97,598 tonnes for October-December from the previous quarter. The export dropped in autumn 2008 due to automobile output downturn.