Market Price of Steel Wire Products Shows Downtrend, Japan

Market price of common steel wire products is decreasing in Tokyo and Osaka. The price has lowered on ahead in Osaka under dealers’ inventory adjustment. Price down trend is now spreading to Tokyo area. Actual demand for common steel wire products maintains stagnant. Meanwhile, imported common wire and wire products impact Japanese market by their low prices. Under these circumstances, some of Japanese electric furnace steel makers seem to have decreased the selling price of common steel wire.

In the case of annealed steel wire, one of major wire products, it is said that the price gap is about 50,000 yen per tonne between domestic products and imported products around Tokyo. In Japan, integrated steel makers and electric furnace steel makers sustain their steel wire selling price unchanged except for Tokyo Steel Manufacturing, which announces the selling price of steel products every month. However, market players consider electric furnaces’ selling price is currently lower than integrated steels’ by about 20,000 yen per tonne.

In Osaka, the market price of common steel wire products has lowered earlier than in Tokyo. One reason was that cheaper import products seriously damaged Osaka market and another was that wire fabricators procure steel wire mainly from electric furnaces. In addition, dealers around Osaka started inventory adjustment earlier than dealers in Tokyo when the market price represented a downtrend sign.

It is unforeseeable when and how much range the market price declines. The users of steel wire products are decreasing the procurement. Actual demand for steel wire products stays stagnant from constructions, civil engineering and manufacturing industries. Market inventory is still at the high level against the demand. The market price would maintain downward with loose supply and demand balance.