Japanese carbon steel wire rod output increased by 3.3% to 980,000 tonnes for domestic market in 2005 from 2004, representing first increase in 6 years, according to Japan Wire Products Association. The monthly output was higher in January-September than a year earlier. However, the output the output decreased by 4.3% in October-December from same period of 2004 when the supply turned into oversupply due to lower demand and surging import. The rod makers changed the gear to reduce output from the summer. The domestic demand, which is mainly for civil works and building, decreased widely during economy slump and reduced public investment after the bubble economy burst. The wire rod output kept decreased under the slower demand halving to 950,000 tonnes in 2004 from recent peak of 1.81 million tonnes in 1997. The wire rod market condition got worse with surging import from China in 2005 though the output increased for the first time in 6 years. The inventory held by makers and distributors increased to 101.3% of the shipment in August 2005 compared with the bottom of 44.6% in March 2004. The higher inventory describes the oversupply condition. The domestic markers reduce wire rod output to reduce the inventory and the output actually decreased in October-December from same period of 2004. With the output reduction, the output could decrease for the year to March 2006 from previous year though the output increased in calendar 2005.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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