Electrical steel supply gets tighter in Asian market under firm demand for energy development and appliances in China. Japanese integrated steel makers expect the Asian demand for oriented electrical steel increases by around 10% in 2007 from 2006 and they could keep the full capacity operations. Japanese makers’ export price increased by more than US$ 100 per tonne in a year and is expected to keep the rising trend. The world demand of oriented electrical steel is estimated to be around 2 million tonnes per year. The demand increases for power generator and transformer and the users seek more high valued products to improve the energy efficiency. Japanese integrated steels expect the tight supply could continue for years due to limited suppliers. The Asian demand of non-oriented electrical steel, which is used for motor of appliances and compressor, is estimated to be around 6-6.5 million tonnes per year. The demand in China is around 4 million tonnes. Under tight supply, POSCO of South Korea and China Steel of Taiwan increased the domestic selling price for October-December shipment. JFE Steel increases the export price for Asian buyers for 5 quarters in a row and other Japanese steels increase the price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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