Lower Japan Billet Export Price

Japanese electric furnace steel makers’ billet export price decreases more when world ferrous scrap price is low and construction steel demand decreases under inflation fight policy in Asian countries. The price could decrease more with pressure by the buyers from CFR US$ 630 per tonne for SD295A grade billet for South Korea.

The export price hit CFR US$ 700 per tonne in February. However, the price decreased since then due to lower scrap and steel price. Japanese makers cannot get new order at unprofitable price when the price is around US$ 620 for Taiwan and around US$ 660 for Vietnam.

The export price is also weak at around CFR US$ 665 per tonne for higher grade of SD390 for South Korea. South Korea turned into billet export with the lower electricity cost advantage. Japanese makers cannot get order at loss making price level.

Japanese electric furnace steel makers are also slump for concrete reinforcing steel bar export. The export price is around CFR US$ 710 per tonne for South Korea in April. But the price is now less than US$ 640. Japanese makers couldn’t get new order when the price is decreasing more.