Japan Steel Sheet Export Recovers to Asian Market for Jul-Sep

Japanese integrated steel makers’ sheet export is recovering. The export volume for July-September is expected to increase by 10-20% compared with April-June and the price would surge by $ 50-100 per tonne, according to a source of Japanese integrated steel maker concerned with export contract negotiation for July-September. Hot coil export price is likely to exceed FOB $ 500 per tonne in some cases.

Steel sheet demand seems recovering in Asian market since May, the main exporting area for Japanese mills, thanks to the progress of inventory adjustment and governmental economic stimulus policies such for automobiles and home appliances. Japanese integrated steels were in wait-and-see mood on the view the demand was nominal caused from inventory adjustment.

However, the makers now suppose the demand is actual one when production of automobiles and home appliances are increasing in China and India. Japanese mills are cautiously watching Asian market where some countries are moving into protectionism for domestic manufacturing industry, for example, there emerges anti-damping problem with South Korea.

Domestic demand recovery for steel sheet is still limited from hybrid cars, flat panel televisions and drum cans though manufacturing industry has advanced inventory adjustment and recovered their operations to the actual demand level. Especially the demand maintains very low from construction market, in which the most volume of steel sheet is consumed.

Domestic crude steel production is expected to exceed 20 million tonnes for July-September after 3 quarters. The recovery of steel sheet export could push up the crude steel output.