Japanese Sheet Dealers Try to Increase Import

Japanese dealers plan to increase steel sheet import while the domestic integrated steel makers increase the price for shipment in April. The dealers aim to increase the purchase of low-priced imported steel sheet while the domestic makers’ price would increase. A Japanese trading firm source said the hot rolled coil orders from the dealers to Anshan Iron and Steel for April shipment are 3 times of the normal level.

Japanese sheet dealers estimate the domestic reselling price would not increase early due to the low demand. The dealers aim to reduce the cost increase by importing low-priced sheet while Japanese integrated steels increase the price.

Some dealers plan to import to gain the valuation profit. Anshan Iron & Steel offers C&F US$ 590 per tonne for April shipment. When Japanese integrated steels increase the price by 15,000 yen in April, the price gap expands.

Japanese inventory of hot rolled sheet, cold rolled and coated stays at around 3.5 million tonnes per month and supply and demand are balanced. However, the stock would increase due to the import. Japanese steel makers and trade firms are concerned about the import.