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Japanese Wire Rod Export Prices Up In Q4 Asian Deals
Japanese integrated steelmakers have won the price increases they require in their wire rod export negotiations on shipments to Asian destinations in the October-December quarter of 2006, TEX Report learned Thursday. The price increases range from a level of US$100/ton or more for commodity-grade wire rods to that of around US$50/ton for high-grade wire rods.

As a result, the new prices are described as levels of US$650/ton FOB for high carbon wire rods and US$830-850/ton FOB for wire rods of tire cord quality.

The Japanese steelmakers are thought to have achieved the price increases they offered in an environment to their advantage. There is an expansion of demand for high-grade wire rods, centering on use for automotive parts, across Asian destinations except China. Also, supply-demand conditions for wire rods are tight in Asia in the repercussions of equipment repairs or production line adjustments at integrated steelworks in South Korea and Taiwan. South Korea's integrated steel giant Posco is in course of repairs of its production facilities for wire rods. Taiwan's sole integrated steelmaker China Steel Corp (CSC) has an improvement under way of the billet production line at works.

In China, meanwhile, local transaction prices of domestic wire rods continued to fall until recently as if to meet rumored reductions of export tax rebates. But a fall in prices stopped at the end of August when an excess of domestic wire rod inventories proved less than forecast.

In this connection, it remains to be seen whether domestic wire rod prices in China will become closer to international price levels in and after 2007. At present, international price levels differ from Chinese prices by as much as US$100/ton for ordinary wire rods.
last modified : Wed 13 Sep, 2006 [10:31]
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