Japan Cold Stainless Sheet Export Price Stays Low at US$ 2,000/t

Japanese export price of cold-rolled stainless steel sheet fluctuates in a small range at around US$ 2,000 per tonne for SUS304 with 2-millimeter thickness delivered to Hong Kong, to reflect global demand shrinkage for stainless steel products. The current export price is lower by 20% compared with November 2008. The export price showed a rebounding sign in early January but turned down recently. Meanwhile, some of Japanese exporters are offering above US$ 2,300 for April shipment. The price may turn upward.

Japanese trader source said export volume of cold stainless steel sheet had increased very temporarily in February when Chinese inventory decreased widely and Chinese New Year holidays ended. The actual demand still keeps stagnant, he said. In addition, Japanese exporters seem impacted by Korean makers’ aggressive sales when Korean won maintains weak against other currencies contrary to Japanese yen.

Japanese stainless steel maker source said Chinese stainless steel makers are recently loosing their output reductions along advancement of inventory adjustment. For November-December 2008, stainless steel makers around the world were in severe output cut by more than 50% against their capacities. He is afraid that Japanese export price for Asian countries might be impacted by Chinese makers’ output recovery despite of stagnant demand.

The maker source said Japanese exporters would try to sustain the current price level with a concern the price could become less than US$ 2,000 per tonne, the severely non-profitable level, if they prefer order receipt volumes. Japanese makers are offering higher exporting price for April shipment, up by 10% from the present, for better profitability in fiscal 2009 starting April.