Japanese Steel Makers Start Sheet Export Price Hike by US$ 50/t

Japanese integrated steel makers are starting to raise export price of steel sheet when East Asian steel sheet market price rebounded slightly. Japanese steel makers offer price hike by around US$ 50 per tonne for hot rolled coil despite of high yen rate at below 80 yen per US dollar since raw material prices hover at high level. Some users in Southeast Asia bid price hike by around US$ 30 for October shipping. It is unclear that the market price rises actually due to uncertainty of European and Chinese economy. However, Japanese steel makers will keep attaching high value for export price along with moderate export volume, according to one steel maker source.

Bao Iron & Steel, Chinese major steel maker, raises selling price of major products such as cold rolled coil for domestic market in September for 2 consecutive months. Other Chinese major steel makers, Wuhan Iron & Steel and Anshang Iron & Steel announced price hike effective for September, too. They increased the prices only slightly but increased a concern on low profit due to decreased market price since May. On the other hand, the market price might decrease again by production stance of steel makers when excess supply isn’t change by expansion of Chinese and South Korean steel makers’ capacities.

Japanese steel makers are expected to hold down export volume of steel sheet for overseas users and re-rollers except for Japanese specific users such as automobile or appliance after October for the last half of fiscal 2011 when they takes precedence for improvement of export price, according to Japanese steel maker’s executive.