Japan Steel Makers to Raise Hot Coil by US$ 100 to South Korean Re-Rollers

Japanese integrated steel makers will start price negotiation of hot rolled coil with South Korean re-rollers for October-December shipment. Some steel makers established a policy of the price hike by US$ 100 to about FOB US$ 600 per tonne from September shipment. Other steel makers are expected to offer the price hike in next year.

Steel sheet market price is rising on a global basis thanks to recovery of steel demand. Chinese sheet market price increased by about US$ 100 to over US$ 550 per tonne for a month, according to Japanese large dealer source. The market price is reaching US$ 550-600 in South East Asia and USA. Chinese market is growing and other countries’ steel demand is recovering when manufacturing industry completed the inventory adjustment. Sheet makers’ output is increasing rapidly in each country.

Japanese integrated steel makers plans the price hike thanks to tight supply and demand. South Korean re-rollers are expected to make resistance against the price hike for October-December shipment when Japanese sheet price rose by about US$ 100 for July-September shipment from June shipment.

Meanwhile, international slab supply is becoming tight. Slab market price dropped at over US$ 300 per tonne at one point, but is rising recently thanks to the recovery of steel demand. Major sheet suppliers, South American sheet makers are raising the offering price to US$ 470-480 per tonne. Consequently, Japanese steel makers will the export price to US$ 500.