Japan Rebar Export Price Shows First Down in 2 Months

Japanese rebar export price showed first down in 2 months. South Korean importers requested price cut due to lower ferrous scrap price. The export price decreased by 5% or 2,000-3,000 yen per tonne compared with the recent high at the end of January. Japanese billet export price is also expected to turn downward when cheaper Russian billets flow into Asian market.

Japanese rebar export price was below FOB 40,000 yen per tonne for South Korea at the end of last year and rebounded to 45,000 yen after New Year holidays. The current price is 42,000-43,000 yen. South Korean importers are requesting price cut when Japanese ferrous scrap export price decreased by over 10% or 2,000-3,000 yen per tonne for a month.

Japanese billet export price decreased was around FOB 30,000 yen per tonne for China at the end of last year and rebounded to 36,000 yen for South Korea after New Year holidays. The current price offered by South Korean importers is below 36,000 yen. Russian billet export price is C&F 28,000 yen per tonne to South Korea, lower than Japanese price.

Japanese electric furnace steel makers continue output reductions by over 50% this year compared with the same period of last year. They expected export market after Chinese New Year because they aim to recover operation rate. But rebar and billet export conditions are likely to keep severe with cheaper Russian billet export price and downtrend of ferrous scrap price.