Japan H-Beam Export Price to Increase
Japanese H-beam export price is likely to increase with rebound price in China though now the export price stay at around FOB $520 per tonne. Chinese prices including ferrous scrap recovered earlier than expected while South Korean construction demand will increase seasonally after rainy season. However, Japanese makers are likely to export at large volume when the export price is still lower than domestic selling price and domestic supply is still tight.

Japanese H-beam export to China started increase since spring 2003. China became top destination in September 2003 exceeding South Korea. Chinese domestic price reached as high as $700 per tonne lifted by strong construction demand. Chinese price decreased to $400, which was lower than makers’ selling price, in April-May with decreasing scrap price. Chinese price now recovers to around $460 with increasing scrap price.

Chinese price is still lower than Japanese domestic price at around 78,000 yen per tonne. Chinese makers are willing to export for Japan. Chinese cheap export as low as CIF $460 decreases South Korean domestic price. Japanese makers reduce export depending on price.

Japanese H-beam export decreased to 25,155 tonnes in May, decreasing by 3.0% from previous month and by 44.5% from a year earlier, announced by Ministry of Finance on Thursday. The averaged export value was 51,445 yen per tonne.
Japanese export decreased by 18.0% to 9,965 tonnes in the month from previous month with 55,513 yen per tonne of averaged value. Export to China increased by 0.8% to 8,704 tonnes with averaged 50,646 yen. Export was 2,119 tonnes for Vietnam, 1,359 tonnes for Malaysia, 1,022 tonnes for Saudi Arabia, 748 tonnes for Hong Kong, 851 tonnes for United Arab Emirates and 269 tonnes for Thailand.