Kobe Steel to Increase Special Steel Bar & Wire Rod Export

Kobe Steel expects the special steel bar and wire rod export will increase by 5-10% for Asia in July-December from same period of 2005 under firm demand for automotive parts. The firm tries to meet higher demand from transplants of Japanese auto-parts makers in China and Association of Southeast Asian Nations, especially in Thailand. The demand for special steel bar and wire rod is expected to keep high level for automobile industry. Kobe Steel supplies materials for engine valve spring, suspension spring, bolt and nut, cold heading wire for forging parts, cold finished bar and steel tire code. The firm expects the export of materials for cold heading wire and cold finished bar increases by 15% to Thailand when local parts makers finished inventory adjustment and increase the purchase. Thai parts makers increased steel materials for cold heading wire and cold finished bar in July-December 2005 with expectation for higher demand in 2006. However, the parts makers tried to reduce the inventory after their shipment increased only by 12-13% in January-June. Kobe Steel expects the suspension spring materials export increases by 10% for China and Thailand while the steel tire code export will increase. The higher demand for automobile industry will lift Kobe Steel’s export of steel bar and wire rod in second half of the year. The firm got around 5% of price hike for steel tire code for the makers in January-June.