Higher Price for Steel Wire Products in Osaka

Market price of wire rod processed steel products shows sign to increase around Osaka. The distributors try to pass higher cost price after second hike by wire rod makers. The market price is likely to increase gradually under pressure by makers though the distributors could have trouble to cover the higher cost price. The market price could move higher in early April when the distributors increase the reselling price in late March. Major wire rod makers of Godo Steel and Nakayama Steel Works announced the price hikes after January. The distributors changed the mind after Godo Steel announced the second hike on March 5 to increase the selling price by more than 5,000 yen per tonne for April order. The local market price kept the level for long period of time after hitting bottom. The price decreased for some items including nail and annealed steel wire in 2006 due to lower imports. The price has kept the level except for some items including galvanized steel wire, of which prices increased due to extremely higher zinc price. The market price was expected to rebound due to better supply balance in second half of 2006. However, the price for most items didn’t major gain despite of effort to lift the lower price. The price kept the level in off demand season after October-December. The distributors are forced to pass higher cost price after hikes by major rod makers. The distributors expected the hike but the makers announced more than 10,000 yen per tonne of hike through twice hike in short period of time after January. Local wire processing makers try to increase the selling price. A processing maker said the firm already passed the higher rod price through 5,000-7,000 yen per tonne of price increase. Local steel wire products dealers’ association reported the market price increased by 1,000-5,000 yen per tonne for nail, annealed wire and galvanizing wire in early March.