Japan Sheet Export Price May Decrease for Jan-Mar 2009

Japanese steel sheet export price is expected to decrease when Asian market price is dropping mainly in China. Japanese integrated steel makers agreed with South Korean re-rollers to set the hot coil export price at around FOB US$ 1,000 per tonne for October-December shipment, and with Japanese electric appliance makers in Asia to raise the export price by total FOB US$ 400 per tonne since April. However, a maker source said the price negotiation would be harder for January-March 2009 shipping compared with the previous quarter due to rough fluctuation of yen exchange rate.

Asian steel sheet market price is decreasing when Chinese steel makers expanded the exports due to sagging demand after Beijing Olympic. Chinese steel export increased to 7.21 million tonnes in July and 7.68 million tonnes in August, those which renewed the monthly record for 2 consecutive months. Because Chinese steel export increased, the market inventory is increasing around the world. On the other hand, the market price turned downward with global finance crisis.

In South Korean market, won exchange rate weakened rapidly along with finance crisis. Japanese steel makers concluded the export negotiation with South Korean steel makers at the same level compared with last month.

Hot coil market price in Asian region seems partially as low as US$ 800 per tonne currently, down by more than US$ 200 from the recent peak. A Japanese steel maker source said the firm’s profit becomes red if hot coil price falls below FOB US$ 800 per tonne.