Japan Major Steel to Hike Sheet Steel Export Price for January-March

Japanese major steel makers’ sheet steel export price is likely to increase in January-March from October-December level at the ongoing negotiation. Some makers already got order for hot rolled coil at around FOB US$ 600 per tonne from Southwest Asia when the demand increases in China, South Korea, Association of Southeast Asian Nations and Southwest Asia.

Asian sheet steel price increased by around US$ 30 per tonne since late November after Chinese major makers including Baoshan Iron and Steel, Wuhan Iron and Steel and Anshan Iron and Steel increased the domestic price for December. The price is expected to increase more when iron ore and coking coal price will increase for next year.

Sheet steel buyers in Asian market started sheet steel purchase recently from Japanese major makers while the buyers held the order since mid-October under slump in Chinese steel price. Japanese steel makers see the demand is firm in early 2010 while Japanese makers concerned potential Asian oversupply in January-March when Chinese and South Korean steel makers launch new capacity.

However, extra high yen rate at less than 90 yen per US dollar could impact on Japanese steel makers’ profitability. The makers try to increase the export offer price but they have to compete with rivals in China and South Korea. Japanese makers start talk with major sheet steel buyers including South Korean rerollers.