Japan Sheet Steel to Increase with Limited Domestic Availability

Japanese sheet steel distribution market interests concern potential higher import. Some of the distributors and processors seek alternative offshore source when the domestic makers reduce the shipment for distributors to secure materials for automobile and export. The offshore suppliers are also willing to increase the export to Japan under higher yen rate. POSCO and China Steel Corporation (CSC) increased the export price of hot, cold and coated sheet to Japan by 20,000-25,000 yen per tonne for April-June from January-March. The price increased to 90,000-95,000 yen for cold rolled sheet, according to Japanese source. Anshan Iron and Steel increased the hot coil export price by US$ 80 to US$ 950 per tonne for June shipment. POSCO, CSC and Anshan reduce the export volume by 30-40% for April-June from January-March to secure the materials for domestic market. However, offshore rerollers including Hyundai Hysco, Dongbu Steel and Union Steel apparently try to increase the shipment to Japan. The price is said to be around 110,000 yen per tonne for June shipment. Tangshan Iron and Steel and Baoshan Iron and Steel also ship hot coil for Japanese market. The price level is higher than Japanese integrated steel makers. However, the tight supply encourages the dealers to seek offshore sourcing, especially for cold rolled sheet. A trader said Japanese buyers increase the import when they cannot secure domestic materials.