Severer Japan Major Steels’ Sheet Export

Japanese integrated steel makers’ sheet steel export condition gets severer. The competition gets severer in Asian steel market when steel makers in South Korea, Taiwan, Russia and Ukraine resume the export to Asia for June shipment while yen rate hit 2-month high of 79 yen per US dollar on Tuesday. Japanese makers try to increase the export price by around US$ 50 per tonne for June shipment while the export market is peaking.

Asian sheet steel market price started to increase in February and the price increased by around US$ 100 per tonne through May shipment. The price apparently exceeded CFR US$ 700. The price was lifted by better demand in Southeast Asia under recovering from Thai flood slump along with stabilizing European financial market.

However, Asian steel market is still shadowed by the overcapacity when Chinese daily raw steel output hit record in early April and South Korean and Taiwanese steel makers have expanded capacity. Japanese steel makers’ sheet export condition is still uncertain depending on the yen rate and rivals’ move while the export contributes to better profitability through May shipment.