Japan Billet Export Price Jumps by 4,000-5,000 yen/t

Japanese electric furnace steel makers’ billet export price increases by 4,000-5,000 yen per tonne compared with end of 2007 when Chinese exporters are reluctant to ship offshore market after Chinese government increased the export tariff from 15% to 25%. The billet export price exceeded concrete reinforcing steel bar export price. Japanese billet export price is FOB 63,000-64,000 yen per tonne for Taiwan for February-March shipment compared with 58,000 yen in end of 2007 and rebar export price at 61,000-63,000 yen for January shipment. Asian buyers shift to Japanese billet after Chinese suppliers reduce the export. Japanese billet export jumped to 92,044 tonnes in November from 77,224 tonnes in October and 73,453 tonnes in September. Japanese electric furnace steel makers expect the export could keep firm with limited availability from China. Japanese electric furnaces try to cover slower demand in January-March by increasing billet export.