Japan Steels Offer FOB US$ 550/t for Korean Hot Coil Buyers

Japanese integrated steel makers started sheet steel export price negotiation this week for January-March shipment. Some makers apparently offered more than FOB US$ 550 per tonne for hot rolled coil for South Korean rerollers and other buyers. The makers try to increase around US$ 50 for cold rolled and coated flat steel from October-December. The suppliers and buyers still try to find market trend including other suppliers in China and South Korea.

Asian steel demand is firm especially in China. South Korean rerollers’ operation increases more in October-December from July-September and April-June when the demand increases for automobile and appliances. However, Chinese market price decreased since August due to Chinese overproduction and overstock. Chinese hot coil price decreased to less than US$ 450 per tonne temporarily.

The price down mood changes recently. Baoshan Iron and Steel increased steel price for December shipment while Wuhan Iron and Steel increased the selling price by 300 yuan per tonne for hot coil and cold coil. Those Chinese major makers apparently increase the export price by around US$ 20-30 per tonne.

South Korean new capacity is also new factor in Asian market. Hyundai Steel launches integrated steel operation and Dongbu Steel started hot coil production. Japanese main export destination of South Korea is expected to reduce the import. Japanese steel makers expect Japanese high grade sheet steel export to South Korea is hard to be replaced by new suppliers especially for automobile and appliances application when the users strictly check and approve the material.