Japan Integrated Steel Makers Increases Wire Rod Price by 10,000 Yen/t in April

Japanese integrated steel makers are likely to increase selling price of carbon steel wire rod by over 10,000 yen per tonne in April to reflect high material cost. This is the first price hike in about one year. Electric furnace steel makers have already announced the price hike since ferrous scrap price strongly surged. Imported Chinese steel wire rod price is also rising. Secondary steel wire processors should improve the selling price after the hike by integrated steels.

Integrated steel makers plan to raise selling price of steel sheet, plate, shaped steel and steel tube by around 10,000 yen per tonne for January-February contracts to pass raw material cost upsurge. Market demand for carbon steel wire maintains weak for civil engineering while hit bottom for building materials, according to an integrated steel maker source.

Godo Steel, Japanese major electric furnace steel maker, announced price hike of carbon steel wire rod by 10,000 yen for March shipment. The firm implements the hike in advance for February shipment as to the products competitive with imported products. Imported price of Chinese wire rod is CIF 65,000 yen per tonne for March arrivals, up by 10,000 yen from the previous quarter. The price is expected to maintain strong tone after Chinese New Year holidays.

Domestic secondary steel wire processors intend to raise selling price of steel wire products due to rising material price.