JFE Steel to Offer US$ 50/t Hot Coil Export Hike

JFE Steel tries to increase hot rolled coil export price further. The firm decided to offer US$ 50 per tonne hike for late February shipment after the firm announced US$ 30-50 hike for January shipment. The firm offers the additional hike to trading firms and buyers soon. The firm keeps 15-20% lower export volume than October-December level.

Asian hot coil market price increases the upward trend depending on the areas. Asian steel makers’ profitability gets severe due to sharp price drop since September 2011. The price rebounded when the makers in China and Japan reduce the production and the makers in South Korea and Taiwan increase the export price.

JFE Steel already got US$ 15 per tonne of higher export price for long distance buyers and US$ 10 higher price for Asian buyers for late January shipment. The firm also realized US$ 30 hike for long distance buyers and US$ 20 hike for Asian buyers for early February shipment.

The buyers’ inventory decreased to less than normal level when they adjusted the stock during the price down phase. Some of the buyers require multiple months order when they expect higher price in near future.

Asian hot coil market price is US$ 640-650 per tonne. The makers cannot secure reasonable profit at the price. JFE Steel tries to increase the price step by step targeting around CFR US$ 750 level.