Japan Steel Billet Export Price Levels Off

Japanese electric furnace steel makers’ billet export price levels off. Offshore billet users are requesting price down since international ferrous scrap market price downturned. Strong yen trend also impacts Japanese electric furnaces’ export profitability for billet and rebar.

Japanese electric furnaces’ billet export price to South Korea is currently FOB 52,500-53,000 yen per tonne for SD295A. South Korean mills offer low export price when domestic steel product market prices level off. There are few new billet export contracts after a recent contract conclusion for 3,000 tonnes at FOB 53,000 yen.

The export price to Taiwan is even lower than the price to South Korea. Steel product market prices have declined since pre Chinese New Year holidays. Price cut offers are stronger than Korean mills. New export contracts are scarcely concluded between Japanese electric furnaces and Taiwanese mills.

The current export price to Vietnam also represents as low as FOB 51,000 yen per tonne. Japanese electric furnaces aim to sustain the price level at FOB 55,000 yen at least when ferrous scrap market price stays at 35,000-40,000 yen level. It seems to be difficult for Japanese electric furnaces to conclude new export contracts for a while.