Japan Rebar Export Shifts to South Korea

Japanese rebar export market is impacted by US subprime lending problem. The export price to USA increased to around FOB 64,000 yen per tonne for Septemebr shipping. However, the export negotiation almost stopped recently when house building is decreasing in USA. Japanese rebar makers are shifting the export to South Korea where rebar demand is strong. Some makers examine to export billet to South Korea.Japanese rebar export price to USA increased to FOB 66,000-67,000 yen per tonne in May and decreased to FOB 61,000 yen in August. The price rebounded to around FOB 64,000 yen for September shipping. However, after summer, house building in USA became stagnate. Japanese rebar export totaled 100,000 tonnes to USA during January-August but the annual export is expected to widely decrease from 178,000 tonnes in 2006.Japanese rebar makers are increasing the export to South Korea. The makers and South Korean importers are under price negotiation for November shipping and the contract price is expected to be around FOB 65,000 yen.