Nippon Steel to Reduce Export Volume, Raise Export Price

Nippon Steel will reduce the steel export by more than 10% mainly for hot rolled flat steel for July-September from April-June when the firm has limited steel source to prepare for blast furnace relining at Nagoya works. The firm already offered FOB US$ 570 per tonne of hot coil price for South Korean rerollers, which is more than 100 higher from June shipment, and tries to increase the export prices. The firm keeps cautious to accept all of strong orders when the market price increases under worldwide tight supply of steel source and some steel users tries to build inventory with expectation of higher price while Nippon Steel tries to keep the profitability by the price hikes. Nippon Steel will increase the export price of cold rolled flat steel to FOB US$ 700 per tonne for Chinese market for July-September shipment from US$ 650 in June. The firm also increases the export offer of galvanizing steel price to US$ 850 from around US$ 700 in April-June to cover the higher zinc cost and to reject lower order. The firm also considers increasing half year contract export price for Asian transplants of Japanese appliances makers under the higher market price.