Strong Japanese Billet Export Price

Japanese steel billet export price surged by US$ 100 per tonne compared with the bottom in November due to the increase in ferrous scrap and firm demand in Asia. The bid from importers in China and Southeast Asia is as high as more than FOB US$ 500 per tonne for SD 390 grade. Japanese electric arc furnace steel makers aim to increase the export price when ferrous scrap price is increase.

Billet export price declined to less than FOB US$ 400 per tonne in November and the price increased to FOB US$ 430-440 at the end of 2009 when ferrous scrap price increased. The importers in Asia are increasing purchase since the beginning of 2010 expecting the price hike. Some importers’ bid is as high as FOB US$ 520 in China. Japanese electric furnace steel makers receive many inquiries from the importers in China, Taiwan and Vietnam.

Japanese electric furnace steel makers would increase the export to Asia. However, the makers watch for a chance to settle transactions while ferrous scrap price would increase more.