Japan Steel Sheet Export Price Slows for Asia

Japanese integrated steel makers’ steel sheet export transaction remains slow for Asia when the export market price is much lower than their offer. The Asian users’ bid price is significantly lower than the integrated steels’ offer for cold rolled sheet and galvanized steel. A trading firm source sees the makers’ export volume would decrease by 10-20% for July-September from April-June.

Steel sheet market price is in slump in Asia due to higher export from China. Chinese steel export marked more than 4 million tonnes for 4 months through June, according to Chinese authorities. Chinese steel makers are increasing export when domestic manufacturing slows under inflation control policy. Especially, the makers are increasing export of cold rolled sheet and galvanized steel for Southeast Asia. Some users’ bid price for cold rolled coil is lower than US$ 700-740 per tonne of hot rolled coil market price.

Japanese integrated steel makers apparently continue a certain export volume for its shareholding companies, business partners, overseas automobile and electronics plants, which increase the output after supply chain disruption from the major earthquake. However, the integrated steels’ export business is severe in profitability and volume under high level raw materials cost and 80 yen per US dollar level yen rate.

Japanese integrated steel makers’ tin plate export price increased by US$ 20-100 to C&F 1,450-1,500 per tonne for July-September shipment from April-June. Their tin mill black plate export price would increase by US$ 50-100. However, the integrated steel source sees the price talk with Chinese users could take more time.