Japanese integrated steel makers will start export price negotiation with South Korean re-rollers in mid August. Japanese steels examine the volume and price levels and are seem to raise hot-rolled steel sheet by few ten dollars to reflect the supply tightness. The negotiation might become hard when South Korean re-rollers are suffered from worse profitability due to lower market price in the country.Nippon Steel, Sumitomo Metal Industries and Kobe Steel contract with South Korean re-rollers every half year while JFE Steel contracts every quarter. JFE Steel raised its selling price by $10 for July-September shipment compared with previous quarter.Hot coil supply in Asia is expected to keep tight after September due to strong demand in the region and POSCO’s hot rolling mill maintenance. Chinese market price seems to hit bottom soon though which was weak due to the stock adjustment or advanced shipment before the export restrict measures become effective. Lower market price would impact Chinese steels’ profits with regard to the export taxes.Hot coil orders are increasing from South Korean re-rollers to Japanese steel makers. Japanese steels are unlikely to raise the selling price largely for the stable relation between Japanese steels and South Korean re-rollers, even though Japanese makers are expected to keep strong selling stances.
Japan Steel Scrap Composite Prices (Sangyo Press)08/20/2018
|35200YEN (400)||40500YEN (800)|
|315.53US$ (4.51)||363.03US$ (8.22)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)