Unforeseeable Steel Sheet Price in Asia, Weak Export from Japan

Steel sheet market price trend is unforeseeable in Asia. Economic activities seem recently slowing down in Asian main markets such as China, Vietnam and Taiwan along each government’s anti-inflation measures. Steel makers’ price policies also differ, whether price up or down. Japanese steel trader source pointed out steel makers’ profitability is worsening since raw material prices stay high for July-September while steel inventories are increasing in Asian market and the users’ demand is weak. The trader said the market price is unlikely to upturn for a while.

Japanese export price to Asia is said at around CFR US$ 750 per tonne for hot rolled coil, CFR US$ 800 per for cold rolled coil and CFR US$ 800-850 per tonne for galvanized steel sheet. Meanwhile, the market price range is currently widening by countries or users.

Japanese integrated steel makers are facing hard export negotiations when yen exchange rate maintains strong, temporarily reaching 79 yen per US dollar on June 8. Japanese manufacturing industry is gradually recovering plant operations after Japan Earthquake. On the other hand, Japanese steel sheet export to South Korea, the largest importer of Japanese steel sheet, represented year-to-year minus for 5 straight months through April. The export is likely to decrease more for June shipment.

New export contacts are also inactive between Japanese steel makers and importers of other countries. Japanese steel sheet export is declining.