Japan Sheet Steel Export Rises by US$ 50-100/t

Japanese integrated steel makers get US$ 50-100 per tonne higher sheet steel export price for April shipment from March. The price reached around FOB US$ 700 for hot rolled flat steel, more than US$ 800 for cold rolled flat steel and US$ 870 for hot dip galvanizing steel. The makers try to increase the price by around US$ 200 for April-June from January-March.

Japanese hot rolled wide strip and cold rolled wide strip export increased for 7 months in a row through January in year to year basis while the galvanizing steel export increased for 2 months in a row, according to Japan Iron and Steel Federation.

The sheet steel supply is tight in Asian market due to higher demand for automobile and appliances in South Korea and China. The high grade steel makers cannot meet the demand due to facility repair and trouble.

Chinese steel market increases after Chinese New Year after Baoshan Iron and Steel increased the domestic price for March while some market observers concerned the price could decrease due to credit squeeze and overstock in China. Higher coking coal price at US$ 200 per tonne for April-June and expectation for higher raw materials cost also support the higher steel market.