Japan Steel Sheet Export Drops for Asian Market

Japanese steel sheet export is likely to decrease when users’ inventory is increasing worldwide due to declining demand. Japanese integrated steel makers are hurrying to revise the production schedules when the users in China, Korea Malaysia or Indonesia request the changes of delivery date, reduction or cancel of the orders. Japanese steel makers are expected to start price negotiation for hot coil with South Korean re-rollers for shipment of January-March 2009. They can’t figure out the clear indicator for the negotiation when the shipment volume is expected to decrease and international market price is plunging rapidly.

Hot-coil market price fell below US$ 800 per tonne in North America when the supply and demand became loose impacted by financial crisis in USA. Chinese hot-rolled coil price fell below US$ 400. South Korean banking facilities don’t come down with the letter of credit to steel importers due to cheaper won.

Steel makers aim to sustain their selling price of steel products since they still continue to consume of iron ore and coal purchased at higher price. On the other hand, users are strongly offering price cut to reflect sharp drop of the market price.