Cautious Japanese Integrated Steels for Electrical Steel Export to China

Nippon Steel and JFE Steel are reluctant to export grain-oriented electrical steel sheet to China while POSCO and other overseas steel makers increase the export to China. The inventory increases in China and Chinese authorities increased the import taxes in January. Nippon Steel sees the demand would increase when the energy developing projects restart in China. However, Japanese integrated steel makers seem to focus on the high grade export to China with firm demand for the high end products.

Baoshan Iron & Steel announced the firm decreases domestic grain oriented electrical sheet price by 1,500 yuan or US$ 220 per tonne in February. The demand decreased after the global economy recession when the power development stopped in China and the demand declined more in 2009.

At the same time, Chinese electrical sheet import increased from USA, Russia and South Korea in 2009. The inventory in China increased and the price declined. The price in China is lower than other countries.

However, the demand is expected to increase in China due to the increasing power projects. On the other hand, the inquiries from India is increasing in Japan, according to Japanese trade firm source.