Japan Steel Makers Reduce Cold and EG Sheet Export Due to Low Profitability

Japanese integrated steel makers are currently decreasing export volume of cold rolled and electrogalvanized steel sheets. They can’t secure profit when selling prices of these items don’t increase as strongly as other upstream items such as slabs and hot coils. Higher yen rate at 80-85 yen per US dollar also impacts Japanese steel makers’ profits. Raw material prices will probably rise for April-June and thus cold rolled and electrogalvanized steel sheet prices should increase. Japanese steel makers would try to improve profitability.

Current spot export price is FOB US$ 730-750 per tonne for cold rolled sheet and US$ 800-850 per tonne for electrogalvanized sheet, according to a trader source. Export price of hot rolled coil jumped by US$ 70-100 to over US$ 700 in late 1-2 weeks. Meanwhile, cold rolled and electrogalvanized sheet export prices increased only by US$ 30-50. Some of integrated steel makers show intentions to accelerate spot price hike for February shipping, even eyeing export volume reduction.