JFE Steel to Offer US$ 50/t Hike for Hot Coil Export for May

JFE Steel decided to offer US$ 50 per tonne of hot rolled coil export hike for May shipment at the negotiation starting in next week. The firm tries to improve profitability when hot coil and sheet steel market price increases worldwide except for some regions. With the hike, the export price apparently reaches CFR US$ 750 per tonne.

International sheet steel market changed the trend in February when the makers try to improve the price level after their profitability got miserable during sharp price drop in 2011. The demand also shows sign of recovery under stabilizing European financial situation, better manufacturers’ operation after Thai flood and monetary ease in emerging countries. The buyers including steel rerollers increase the order to the steel makers under expectation for higher price while the buyers reduced the stock during price decrease trend.

JFE Steel already improved the export price by near US$ 100 per tonne in the year after the firm realized US$ 30-40 hike for January-February shipment, around US$ 30 hike for March shipment and around US$ 20 hike for April shipment. However, the firm cannot make money at the price level under still higher yen rate.

The firm reduces the hot coil export volume by around 15% in April-June from normal level to improve the price level. The firm will keep increasing the export price when the firm apparently targets CFR US$ 850 per tonne level of price for hot coil.