Chinese Carbon Steel Wire Rod Offer Price Shows Upward for Japan

Carbon steel wire rod exporters of China are currently offering C&F $ 520-530 per tonne against Japanese customers for arrivals in mid January, according to Japanese importer source. The offer price is higher by $ 20-30 than the present arriving price and expected to surge by additional $ 10-20. Chinese export price is likely to keep upward for a while.

In China, construction and civil engineering works maintained active while market price of carbon steel wire rod was in downtrend due to makers’ oversupply. The market price seems to have turned upward currently thanks to inventory adjustment and output reduction by makers. Japanese concerned source points out the market price in Eastern China continued to surge for late 4 weeks and reached 3,650 yuan (approximately 48,000 yen).

In Japan, Tokyo Steel Manufacturing, the largest electric furnace steel maker, announced to raise its selling prices of wire rod and concrete reinforcing steel bar by 2,000 yen per tonne for December shipment. The wire rod selling price would return to the level as high as in October.

Steel wire product dealers in Japan expect the market price could be supported by Chinese market price’s upturn and Tokyo Steel’s price hike. On the other hand, they forecast the market price couldn’t rebound before the demand volume recovers. Dealers’ shipment of steel wire products hasn’t increased for civil engineering and constructions. Most dealers suppose their shipment keeps the current low level within this year.