Potential Higher H-Beam Import by Japan Buyers

Japanese steel buyers could increase H-beam import from South Korea under higher yen rate. South Korean makers increased the offer to FOB US$ 850 per tonne recently but the price is still lower than Japanese makers’ price. The import would increase the share in Japanese market depending on the market condition when general contractors and other buyers increase the interest in cheaper import while Japanese H-beam makers try to increase the selling price.

South Korean makers offer FOB US$ 830-850 per tonne to Japan, which is around US$ 30 higher than before, according to sources including South Korean makers. The price is around 70,000 yen per tonne under the current exchange rate, which is more than 10,000 yen lower than Japanese makers’ price.

A source in Japanese trading firm said Japanese buyers wouldn’t import H-beam when the price gap with Japanese makers is less than 20,000 yen per tonne. However, Japanese makers would increase the selling price more expanding the price gap to encourage the import by the buyers. The import volume depends on domestic makers’ pricing along with foreign exchange rate.