Japanese mills to raise wire rod prices for July shipment

TOKYO (Scrap Monster): The Japanese blast furnace mills are expected to start export negotiations on wire rod to Asian countries for July shipment. The mills are expected to maintain the trend of marginally raising the export prices. The wire rod export offers are likely to increase slightly.

The wire rod demand is reported to be steady in most of the Asian countries. The demand from automotive industry remains strong in China and Japan. The higher automobile sales in these countries may increase the demand for steel wire rods which are primarily used in the production of tire cords. The domestic political instability in Thailand may dent the prospects of wire rod exports to that country.

The decline in Iron ore and coking coal prices may put pressure on customers to cut prices. The falling raw material prices are likely to lead to a drop in product prices. However, the rise in auxiliary materials such as molybdenum and nickel may make it difficult for customers to drop prices beyond a limit.

Meanwhile, automobile makers have requested the Japanese mills to maintain the prices for July shipment, as any price rise will eat into their margins. The auto part manufacturers too have strongly opposed to hike in wire rod prices.