Contracts begin to have been concluded at markups for shipments of the next quarter (January-March) in negotiations on steel wire rods by spme Japanese blast furnace mill. The mill is offering an increase in prices by $50, and there are cases for contracts to have been concluded at an increase in prices by $30 in the lowest cases. If customers require a less increase in prices than $30, the mill seems to have requested a decrease in quantity.|
China's prices of steel bars and wire rods have continued to rise. Mills of bars and wire rods have implemented production curtailment by 50% due to environmental restrictions and a decrease in production in the winter season in the northern China. Demand for wire rods for the use of automobiles is still brisk. In addition, demand for reinforced steel bars for the use of building and so on is unlikely to have slumped. Accordingly, as customers are said to have rushed to buy products in the domestic market, prices are rising towards the end of this year, and a decease in inventory is said to expedite a rise in prices further.
Under the circumstances, customers are requiring an increase in quantity of the Japanese mill, and it becomes a good opportunity for the blast furnace mill to raise its prices of wire rods. A source is seeing that an increase in prices by more than $30 will be realized. Prices for the Indian market are higher than those for the Chinese market. At present, a case for a contract to have been concluded at an increased price by $50 is now appearing. In that country, demand for automobiles is strong, and therefore, demand for wire rods for that industry is increasing. Wire rod mills in that country are likely to raise their domestic prices of wire rods by $80 in dollar equivalent.