Japanese Rebar, Billet Export to Keep Slow for Months

Japanese billet and concrete reinforcing steel bar export is expected to keep slow for months. The major buyers in South Korea are reluctant to buy now due to lower won rate against yen along with the slower demand. Japanese rebar export decreased by 16.5% to 50,910 tonnes in September from August, which represented first decrease in 2 months, according to Ministry of Finance. The export was around 2 times of a year earlier level. However, Japanese suppliers get few export orders both for rebar and billet recently and the export could decrease more.

Japanese rebar export price dropped to less than FOB US$ 900 per tonne for South Korea for September shipment while the export price hit FOB US$ 1,080 for USA for August shipment. The new order was very slow for and after October shipment. Japanese rebar makers shifted to export mainly for South Korea to cover slower domestic shipment. However, the export market slump could continue for months.

Japanese billet export decreased by 36.8% to 77,090 tonnes in September from August. The offshore buyers show intention to buy Japanese billet but the price is only FOB US$ 300 per tonne. The export market for Japanese rebar makers are very slow in volume and price both for rebar and billet and the slump could be deeper and longer.