Weak Carbon Steel Wire Price around Tokyo

Carbon steel wire price is flat with potential weakness at around 132,000 yen per tonne for higher grade with 4 millimeters diameter while at around 124,000 yen per tonne for lower grade around Tokyo. The demand for civil work remains stagnant. Supply and demand are not yet balanced despite the effort for inventory adjustment by wire drawers and dealers. Some market sources forecast that the market price declines more from late July and the sources forecast the demand does not bottomed out. The demand is expected to remain low until the beginning of autumn. The price could not rebound for a while.

Market price could decline more due to the demand decrease, constant import and low priced products inflow from western Japan, according to a dealer source. Wire drawers and dealers aim to keep the current price when they have reduced the product price before wire rod price declines. Drawers and dealers see that the shipment would not increase if they reduce the price. However, the demand is unlikely to recover. Market sources are concerned about some makers or dealers reduce the price for liquidation. Demand would not recover due to the seasonal influence. Stagnant demand could continue until beginning of autumn.