Higher Japan Rebar, H-Beam Export Price

Japanese long steel products export price keeps increasing when construction demand keeps firm in Asian countries, ferrous scrap price increases and Korean won rate increases against yen. The export price reaches near FOB US$ 530 per tonne for concrete reinforcing steel bar for February shipment and US$ 590 for H-beam for February-March shipment, both of which are US$ 30-40 higher than recent bottom in 2009 end. The price is expected to increase more when market expects higher iron ore and coal price for 2010.

The rebar export price increases under higher scrap price and won rate after the rebar export price decreased to less than FOB US$ 500 per tonne in end 2009. Some Japanese rebar makers try to increase the price to US$ 550 when South Korean electric furnace steel makers are expected to increase domestic rebar selling price in February.

Japanese long products steel makers try to secure margin between the selling price and scrap cost. They are forced to increase the selling price when scrap export price exceeds 30,000 yen per tonne while domestic rebar market price is only 51,000 yen at direct transaction price from makers to users around Tokyo. The rebar makers try to expand higher priced export.

Japanese H-beam export price reaches FOB US$ 590 per tonne recently while the price was around US$ 560 in end 2009. The makers get strong order from construction booming developing countries including China, Southeast Asia and Middle and Near East. The price is likely to increase more and Some Japanese sources expect the export price would reach US$ 660.