Japanese steel mills plan to increase export shipments of wire rod in October

The negotiation process for the export of Japanese-made steel wire, mainly for Asia and the United States, is in full swing. As wire rod exports from Ukraine have stalled and demand from the US industry is strong, Japanese mills are aiming to increase prices. The detailed terms of their offers were not disclosed, but they intend to increase prices by $ 10 to $ 20 or so. The USA uses wire rod to make solar panels, tires, and so on.

Wire rod prices are on the rise in China as well, as seasonal demand in September and October is quite good. However, there has not been much upturn in demand due to the sluggish real estate market and the credit crunch. The demand for wire rod in Thailand is not decreasing, along with the demand for flat products for the automotive sector and auto parts that are exported to Australia and neighboring countries. There is also a demand for steel wire in Indonesia.

In negotiations for further deliveries from October, Japan is worried about Chinese factories. Their price level since October is $ 550 CFR, which is more than $ 100 cheaper than Japanese factories. As a result, Japanese factories do not compete with Chinese firms.

The problem is that the US anti-dumping policy is working against China, and the export of wire rod from Ukraine has been suspended. Japanese factories do not always compete with Ukrainian factories, but there is a possibility that urgent orders of ordinary steel rods to the countries where Ukraine supplied can be received by Japanese factories. The export geography of this country considers both the regions of the Middle East and Africa.