Japan Electric Furnaces Gain Higher Billet Export Price

Japanese electric furnace steel makers would increase steel billet export price to CFR US$ 680 per tonne. The buyers of offshore rerollers increase the purchase volume after the inventory adjustment.

The billet export price was low level due to historical high yen rate and low priced export by the makers in emerging countries. The price is CFR US$ 630-640 per tonne, which is US$ 10-20 higher then the level at end of 2011.

Japanese electric furnace steel makers try to increase the export price to CFR US$ 680 per tonne to secure the profitability even at current lower yen rate than before.

The international market price is expected to increase more under strong demand and ferrous scrap market. Japanese electric furnace steel makers would reduce the billet export when they follow higher demand for concrete reinforcing steel bar in rebuilding activity in eastern Japan. Japanese steel makers are also cautious for the export profitability when their cost increases especially for higher electricity charge.