Reportedly, the transaction prices of Al killed wire rod will decrease in the Taiwanese market, affected by the price cut of electric furnace Al killed wire rod made by China Steel Corporation.

CSC announced to reduce the list prices for EF Al killed wire rod by TWD 1,000 per tonne for July 2012 delivery, affecting the Taiwanese wire rod market.

Industry sources analyzed why the transaction prices of Al killed wire rod will be affected by the CSC's price cut for EF Al killed wire rod sharply.

They pointed out that the transaction prices rimmed and killed wire rod will not drop much as there two types of wire rod are produced by the Taiwanese single re rolling mills. CSC only produces Al killed wire rod.

Therefore, the Taiwanese single re rolling mills will not cut the prices much for rimmed and killed wire rod due to few competitors.

Currently, as the prices of Al killed wire rod from the single re rolling mills are higher than CSC's list prices of EF Al killed wire rod, the single re rolling mills have been facing pressure to cut the prices to gain orders.

Source - www.yieh.com)

(www.steelguru.com)