Japan Major Steels Get US$ 800/t for Electrogalvanizing Steel Export

Japanese major steel makers got another sheet steel export price gain after they increased the cold rolled flat steel export price to more than FOB US$ 700 per tonne. They started to agree to increase the electrogalvanizing steel price to more than US$ 800 for March shipment. They also increase the hot coil spot export price to more than US$ 600 for Southeast Asia. They succeed to realize US$ 600 for hot coil, US$ 700 for cold coil and US$ 800 for coated steel.

The demand is strong in China and Southeast Asia. The demand is more than expected in China due to stimulus package to encourage purchase of automobile and appliances in rural areas, according to source in a Japanese integrated steel maker. The supply is tight especially for cold rolled flat steel and electrogalvanizing steel, which are used for automobile and flat panel television, due to limited capacity for annealing process in Japan and Asian countries.

Baoshan Iron & Steel of China left the domestic sheet price unchanged for February. However, the selling price is 6,465 yuan per tonne or around US$ 810 level for SPCC grade cold rolled flat steel and 7,391 yuan or around US$ 925 for electrogalvanizing steel for January, which are higher than market price. Baosteel’s price policy is apparently to adjust the price gap with market price while the firm tries to give message to miners under annual contract price negotiation for raw materials.

POSCO of South Korea plans around 60 days of repair for electrogalvanizing line from March. The Asian supply of cold rolled flat steel and electrogalvanizing steel is expected to keep tight. Sony and other Japanese appliances makers plan around 30% higher production for flat panel television in fiscal 2010 starting April. The sheet steel supply balance could get tighter with the higher demand.