Japan Steel Bar Import Drops by 47.7% in F2006

Japanese steel bar import decreased by 47.7% to 19,728 tonnes in fiscal 2006 from fiscal 2005, which decreased for the first time in 3 years. The volume is negligible level. However, the level is relative high though it is lower than 37,772 tonnes in fiscal 2005. The interests are cautious for international market. The largest monthly import was in September 2006 with 4,348 tonnes during the fiscal year. The import was 2,524 tonnes in April 2006. The monthly average was less than 2,000 tonnes. The import was 3,609 tonnes from South Korea, 4,458 tonnes form China, 981 tonnes from Taiwan, 175 tonnes from USA and 129 tonnes from United Kingdom in fiscal 2006. The import from China increased despite of the small volume. The import from China could increase when China produced 83.3 million tonnes of concrete reinforcing steel bar in 2006. Japanese steel bar import was less than 10,000 tonnes in fiscal 1998, 2001, 2002 and 2003 due to lower domestic demand. However, the import increased by 94.8% to 17,408 tonnes in fiscal 2004 from fiscal 2003 and doubled from fiscal 2004 to fiscal 2005. The import tends to increase when domestic price is much higher than international market. Domestic steel bar makers try to increase the selling price to cover higher ferrous scrap cost. Expanding Chinese makers could divert the shipment to Japan though Japanese makers are still superior in quality and service to Chinese makers. Japanese makers should watch the international market while they keep improving the technology.