Japanese integrated steel makers are in trouble for the sheet steel export. Some South Korean rerollers skipped the order for January and February to Japanese steel makers while some appliances makers reduce the order to a third of normal level. The export shipment could be low level for a while when the users reduce the inventory despite of higher Chinese market.
South Korean rerollers apparently reduce the operations as low as 50% level due to slower activity by automakers. The rerollers have no room for additional order when they try to reduce the inventory. The rerollers shift to domestic sources when the won rate decreases against foreign currency including yen. An integrated steel maker in Japan said some rerollers in South Korea stopped the purchase for January and February and others try to keep the marginal order to Japanese mills. The shipment for appliances makers is also slump. Especially electro-galvanizing steel export order is slow when Asian makers expand the capacity. Japanese steels try to improve the supply balance as top priority.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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