Japanese Rebar, Billet Export Price to Decline

Japanese export price of concrete reinforcing steel bar and billet keeps decreasing. The main buyers of importers in South Korea require price cut due to the decreasing demand. The price is expected to decline by US$ 10-20 to around FOB US$ 490 per tonne for December shipment from November. The importers bid around US$ 400 for billet. Japanese electric furnace steel makers are reluctant to export when they cannot make money at the price level.

Rebar market price decreased to around US$ 570 per tonne in South Korea. The importers’ inventory is increasing due to the stagnation in construction market and the inflow of low-priced products from China and Taiwan. The current import price from Japan decreased by about US$ 40 compared with the recent peak, FOB US$ 525-535 for September-October arrival.

Billet import price from Japan is significantly declining in South Korea. Bid from importers is about US$ 100 lower than FOB US$ 500 per tonne in the peak.

Japanese ferrous scrap market price is about 25,000 yen per tonne around Tokyo. Japanese electric furnace steels are concerned about low billet price. The price negotiation stops for December shipment while electric furnace steels are reluctant to export.