Japanese Steel Makers Concerned on Strong Yen

Japanese integrated steel makers are concerned about strong yen trend. Currency exchange rate temporarily hit 87 yen per dollar on Tuesday. Higher yen rate impacts steel makers’ export profitability while leads to domestic output reductions of automobiles and home appliances, the major steel users.

Asian steel market is still in confusion due to excess steel supply and inventory in China. Japanese steel makers’ hot coil export price seems around FOB US$ 700 per tonne for July shipment. Chinese export price is US$ 600-650. Chinese steel price is likely to stay relatively low for a while though Chinese government abolishes export tax rebate for hot coil on July 15 and POSCO of South Korea raises hot coil selling price.

Japanese hot coil export is expected to decrease for July-September. Japanese integrated steel makers are cautious to keep the export price when raw material prices are surging.