SeAH Japan to Enter Steel Raw Material Trade Business

SeAH Japan, a sales subsidiary of South Korean SeAH Steel Corporation, plans to start steel raw material trade business in 2011. As a trial, SeAH Japan has concluded spot buy contracts with Latin American miner for iron ore and direct reduced iron (DRI) at each 40,000 tonnes. The company will deliver iron ore and DRI to Chinese integrated steel maker through Chinese trading company in late March.

SeAH Japan will check grade and quality of raw materials and steel products, and then decide whether to contract yearly buy contracts at 0.5-1.0 million tonnes amount. The company aim to export raw materials to integrated steel makers in China, Korea and Japan.

Iron ore of South American miner contains iron at above 64% while the price is cheaper than spot prices of Australian and Brazilian iron ore. The trail lot will be shipped at the end of February and delivered to Chinese integrated steel maker at the end of March.

SeAH Group acquired South Korean molybdenum maker in 2010 and showed strong intention to enter steel raw material business field. SeAH Japan aims to enter steel raw material trade and contribute to SeAH Group’s business expansion.

SeAH Japan imports carbon steel tube, welded stainless steel tube and hot dip galvanized coil from SeAH Steel as well as welding rod from SeAH ESAB and special steel products from SeAH Besteel to sell in Japanese market.