Slow Demand Cuts Japan Major Steels’ Sheet Export in Oct-Dec

Steel sheet export by Japanese integrated steel makers began to slow down. The makers get few new transactions while main user, Korean re-roll makers offer to decrease delivery volume or to delay the delivery. Japanese export for October-December is likely to decrease. Japanese market sources expect the makers would cut the export price for January-March 2009 reflecting price decrease in China and other Asian countries market.

Demand for sheet decreases in Asia. The inventory increases especially in China due to economy slow down. Meanwhile in Korea, some users can’t secure letter of credit due to short supply of US dollar when won plunged down under financial crisis.

Worldwide slower economy reduces steel market price in Asia. Chinese largest steel maker, Baoshan Iron & Steel reduced the hot rolled and pickling coil price by 1000 yuan per tonne for domestic market for December shipment. The hot coil price decreased by US$145 to around US$ 600 and market sources expect further price cut.

Higher-yen rate is also unfavorable for Japanese exporters. Japanese steels’ export could be suffered from slower demand, higher yen rate and lower market price.