JFE Steel to Raise Plate Export Price by US$50 to South Korea

JFE Steel plans to increase steel plate export price by US$ 50 per tonne to South Korean shipbuilders for January-March 2012 shipping from October-December 2011. JFE Steel maintains high operation rate of plate mill when the firm accepted the large order for UOE steel tube, and the profit for plate export is decreasing due to high yen rate and high raw material price. The firm takes precedence of selling price more than sales volume, and improves the profit.

The export price was highest at FOB US$ 900 per tonne for April-June shipping, while decreased to US$ 830-840 for July-September shipping, and more dropped for October-December shipping. Export market is severe when yen rate rose. The firm said the firm doesn’t decrease the export price for increasing sales volume.

The firm’s export volume maintains usualness to South Korean’s shipbuilders for April-June shipping and July-September shipping, while decreased by 20-30% for October-December shipping when South Korean shipbuilders adjusted the inventory. The firm expects the export volume is flat for January-March shipping from October-December shipping. The firm plans to be full operation for UOE steel tube until the first half of fiscal 2012 at ended March 2013, and to keep high operation rate of plate mill.