Weak Japan Billet, Rebar Export Price

Japanese electric furnace steel makers’ billet export price declined to US$ FOB 50,000-51,000 yen per tonne for South Korea. South Korean reinforcing steel bar makers are reducing the bid when ferrous scrap price in Japan is 5,000-6,000 yen lower than the recent peak in February. The export slows under limited Japanese electric furnaces’ output capacity due to the damage by major earthquake and controlled blackout program.

Japanese electric furnaces’ billet export price is around 3,000 yen per tonne lower than the level in February due to ferrous scrap price decline and slow rebar selling price increase of South Korean makers. South Korean makers recently agreed with general contractors to increase rebar selling price by only 80,000 won to 840,000 won or around 65,000 yen per tonne. With the lower rebar selling price, South Korean rebar makers are reducing the import bid price for Japanese billet.

The Japanese electric furnaces’ billet export price decreased to less than FOB 50,000 yen per tonne for Taiwan. The price for Southeast Asia including Vietnam is FOB 52,000-53,000 yen per tonne, which is 1,000-1,500 yen lower than the level in February. The rebar makers in Southeast Asia shifts to domestic billet sources and the import from other countries than Japan under limited availability from Japanese electric furnaces.

Japanese electric furnaces’ rebar export also slows. South Korean rebar importers’ bid price is around FOB 54,000 yen per tonne while Japanese electric furnaces offer more than 58,000 yen. The Japanese electric furnaces are reluctant to export the rebar for South Korea due to ferrous scrap price uncertainty and higher production cost under controlled blackout.