Nippon Steel Skips NO Electrical Steel Export for China in December

Nippon Steel skips December export of non-oriented electrical steel sheet bound for China. Market price of non-oriented electrical steel has recently lowered in China. Price gap widened between Nippon Steel’s export and Chinese steel makers’ domestic shipment. Chinese importers showed a cautious purchasing stances and Nippon Steel decided to skip spot negotiations.

Meanwhile, Bao Steel currently announced price hike of non-oriented electric steel for December shipment. Chinese steel makers’ selling stances seem changing. Nippon Steel expects the export price could surge again for January-March shipment.

Nippon Steel has raised the spot export price widely since July 2009. The price has surged by approximately $ 250 to FOB $ 750 per tonne until November shipment. On the other hand, Chinese market price has gradually lowered since late August due to domestic steel makers’ oversupply. Some makers’ selling price became below $ 700 per tonne for November shipment.

Demand for non-oriented electric steel maintains stable in China. Coil centers’ shipment keeps active for home appliances such as air conditioners and refrigerators thanks to governmental economic stimulation measures. For example, domestic inventory of air conditioners keeps the moderate level at around 1-1.5 months though which increases in usual years.

The demand is also increasing for motors of electronic devices. Nippon Steel seems receiving many orders from Chinese customers.