Japan Users Increasing Purchase of Oversees Steel Plates

Japanese users are starting purchase steel plate from Chinese and South Korean makers when the demand increases for rehabilitation from earthquake. Some Chinese steel maker increased contracted volume of steel plate from Japanese users by 10% from normal level, according to Chinese steel maker source. There is a case that users such as shipbuilders require supply steel plate from Japanese steel makers. Users are likely to increase usage of overseas steel products.

The demand is increasing for steel plate applied to constructions and buildings. On the other hand, Japanese users increased offers to overseas steel makers when domestic steel makers was visited by earthquake or by planned outage. Japanese users had been purchased steel products from China which acquired Japanese industry standards. Chinese and South Korean steel makers are aggressively keeping pace supply steel plate to Japan because both steel makers have available capacity of production.

Japanese automobile makers mulled purchase steel plate from Chinese steel makers by earthquake, but they buy steel plate from Japan when they reduced production due to decreased Japanese components output. South Korean steel makers was aggressive to increase export steel plat for shipbuilding to Japanese shipbuilders.

Chinese steel makers are reducing steel export when profitability of steel export business decreased by abolishment of steel export tax rebate since July 2010. Chinese government gets right policy that the government reduces low grade steel products export and increases output of high grade steel products due to rising raw material price. Because yen rate is decreasing, Chinese steel makers doesn’t increase steel export, according to major Chinese steel maker source.