12/14/2010 12:36:00 PM
NEWS BRIEFS
Report: Expect Price Hike for Wire Rod Exports
Analysts say Japan’s integrated steelmakers will increase prices by US$50 to US$100 per ton for wire rod exports to Asian destinations during the opening quarter of 2011, boosted by favorable automotive demand, according to SteelGuru.
“Japanese steelmakers are concerned about a possibility that various customers will favor last-minute wire rod purchases in large quantities after the lunar New Year holidays in 2011 before wire rod prices move up if transaction prices of blast furnace feed (iron ore and coking coal) further advance in and after April 2011,” SteelGuru reports.
News of the potential price hike came as Taiwan’s China Steel Corp. reduced its domestic prices on various steel products except steel bar and wire rod, which remain unchanged. Analysts predict CSC will raise wire rod prices beginning in March 2011.
China’s Baosteel Co. seems to be following Japan’s lead. Baosteel hiked prices of its major hot-rolled steel products by 260 yuan ($39.07) per ton in January, while cold-rolled steel prices were increased by 200 yuan per ton.
Meanwhile, South Korea’s POSCO is expected to keep wire rod prices flat for the first quarter of 2011. A decision on that should come within the next week or so. ©2010 GlobalFastenerNews.com
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