JFE Steel to Expand High Valued Steel Export

JFE Steel keeps increasing the export price under firm Asian steel demand. The vice president Tsutomu Yajima said the firm tries to reflect the high value of the products to the selling price through hike of extra charge while the firm increases the high valued steel rate for the export.Mr. Yajima said the firm concluded the price negotiation to increase the export price for October-December including around US$ 10 per tonne hike for hot rolled coil for South Korean rerollers. He said the firm also tries to increase the price more for January-March when high valued steel demand is still strong in Asian market. Mr. Yajima said the firm tries to increase the extra charge for high valued products export. He considers the charge is still lower than the value including higher yield for the users. He said the firm tries to increase the high valued products rate for the export to stabilize the operation and profitability though the high valued products represent around 80% of the export. Mr. Yajima said the firm tries to improve the trade custom when steel makers keep exporting materials even if they didn’t conclude the price negotiation. He said the custom is abnormal when Japanese companies now disclose the quarterly results and ideally steel makers should ship products after the price negotiation. Mr. Yajima sees the export market shows sign to improve when Chinese export volume decreased to less than 5 million tonnes in September. He expects Chinese oversupply pressure is easing while US market also recovers through output reduction discipline by major makers.