Japan: Wire manufacturers raise prices amid surging zinc, operating costs

• Wire manufacturers target second price hike from October
• High zinc, energy and logistics costs squeeze margins

Japan Metal Daily: Wire manufacturers are strengthening efforts to pass on higher costs through a two-phase price increase, with hikes implemented from May and a further increase planned from October. Prices were raised by more than JPY 20,000/t for May shipments, while manufacturers have announced an additional increase of over JPY 10,000/t from October as they seek to improve profitability amid sustained cost pressures.

The extent of price hike penetration varies across the market, but manufacturers and distributors are increasingly focused on strengthening sales to secure the second phase of increases. A distributor said manufacturers have little scope to wait for demand conditions to determine the timing of further hikes, making early communication of the October increase important for reinforcing the first round of adjustments.

Cost pressures have extended beyond wire rod, the primary raw material. Zinc, used as a secondary material, has risen sharply, with prices reaching around JPY 690,000/t at the end of July. This compares with around JPY 480,000/t at the end of July 2025, representing an increase of nearly 1.5 times in one year.

Energy, transportation and labour costs are also weighing on profitability. Packaging materials, including pallets and films, have risen sharply amid disruptions linked to the situation in the Middle East, adding further pressure to manufacturing costs.

Unlike price increases implemented during 2021-2024, which were often aimed at correcting prices amid weak demand, the latest adjustments reflect a broader increase in production and operating costs. Manufacturers are therefore seeking to establish higher selling prices despite uncertainty over demand.

Demand conditions remain mixed across regions. Public and civil engineering projects involving highways, ports, station buildings and fencing are providing some support, although labour shortages and extreme summer heat have slowed construction activity.

Market participants expect demand to improve after the August holiday period, with urban development and infrastructure projects scheduled to start in early autumn potentially supporting wire consumption. Initial project activity may remain slow, but demand for steel bundling and perimeter fencing is expected to increase as construction progresses.

Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.