Steel Export Market Maintains Slackness for Japanese Exporters

It becomes increasingly likely to be protracted slackness of steel export market. Baoshan Iron and Steel and Wuhan Steel left sales price unchanged on August shipment, while Anshan Steel reduced sale price. China Steel decreased sales price for domestic market on September. Japanese some exporter said international steel price turns up in August. However, Japanese many exporters are muddled up sideways trade.

Japanese steel export was record high at 4.09 million tonnes in March, while decreased to 3.44 million tonnes in April and 3.313 million tonnes in May. The export of hot rolled wide steel strip was 903,000 tonnes in March, decreased to 684,000 tonnes in April and 629,000 tonnes in May. The export is expected to continue low level after June when Chinese steel export was over 4 million tonnes for 4 consecutive months and many countries’ economic activity slowed down for mainly manufacturing industry by anti-inflation policy. Sales competition is getting severe among Asian steel makers when Chinese, South Korean and Taiwanese steel makers expanded production capacity in 2010. Japanese steel import increased due to higher yen rate. The import increased for carbon steel products from the previous month for 3 consecutive months until May.

Many countries apprehend trade conflict. Japanese integrated and electric furnace steel makers are nervous about increased import for shaped steel. Some integrated steel maker seems to kick around reduction of steel output by several hundred thousand tonnes against output schedule.