Japanese Rebar and Billet Export Price Impacted by Offshore Cheap Products

Japanese electric furnace steel makers’ export price is weakening for concrete reinforcing steel bar and billet. Ferrous scrap cost is lowering while cheap products of China and Russia are flowing into South Korea, the main export destination of Japanese rebar and billet. Japanese export price to South Korea is around FOB $ 580 per tonne for rebar and FOB $ 470 per tonne for billet as of October shipment. The prices are lower by $ 50-60 than September shipment.

South Korean importers are strongly requesting price cut when ferrous scrap price is declining by about 3,000 yen per tonne from the peak. Rebar price negotiation is likely to be talked at around FOB $ 560 per tonne for November shipment. Chinese rebar export price to South Korea is around C&F $ 500.

Japanese billet export price is also declining. Russian billet export price to South Korea is below C&F 440 per tonne, cheaper by about $ 30 than Japanese electric furnaces’. Russian export price is expected to lower more.

Japanese electric furnaces are unwilling to conclude new export contracts at low price level both for rebar and billet with an expectation ferrous scrap price may rebound.