Japan Billet Export Price to Asia Declines

Japanese billet export price to Asia is decreasing by 1,000-1,500 yen per tonne compared with the recent peak before Chinese New Year holidays. The main factor is global decline of ferrous scrap market price. Some concern the price down is temporary adjustment since iron ore and coal prices are expected to rise in and after April. Meanwhile, some concern billet makers’ price hike hasn’t progressed well and the export price may stay low for a while.

The export price to South Korea is FOB 52,000 yen per tonne for SD295A grade of April shipment. South Korean rolling mills are strongly requiring price cut to Japanese electric furnace steel makers when ferrous scrap price is declining. South Korean users’ bid price is especially low for rebar at 55,000 yen per tonne.

On the other hand, billet export bid price for Taiwan is around C&F 54,000 yen per tonne, almost the same level for Southeast Asia. Export price to Vietnam is weak at around 55,000 yen despite of strong demand for building construction and civil engineering.

Japanese electric furnace steel makers are offering FOB 55,000-56,000 yen per tonne. Japanese domestic ferrous scrap price is around 40,000 yen per tonne, relatively high against international ferrous scrap price.