Japan NO Electric Steel Export Price Rises by $ 30-40/t in Jul-Aug

Japanese integrated steel makers including Nippon Steel and JFE Steel are concluding export price negotiations for non-oriented (NO) electrical steel sheet shipped to non-Japanese consumers in Asia during July-August, raising the price by US$ 30-40 per tonne compared with June shipment. The price hike is mostly approved when the product supply keeps tight thanks to the stable demand from electric appliance and car makers. The export price seems to exceed FOB US$ 1,000 per tonne in some cases after the hike.

Supply and demand balance of NO electrical steel sheet maintains tight in Asia, especially in China. Steel makers have no additional supply capacity under high operations. Coil centers’ inventories keep low in South China where many electric appliance makers are located. Japanese trader source said they tried to increase the stocks but cannot procure the products enough.

However, in China, common steel market prices turned weak in late April due to the government’s tight money policy. Bao Steel, Chinese largest steel maker, announced the price down of common grade steel products for August. Japanese export price of NO electric steel sheet may level off after July-August to reflect weak market tone in China.