Japan Major Steels Raise Hot Coil Offer by US$ 100/t or More for South Korea

Japanese integrated steel makers started quarterly hot rolled coil price negotiation with South Korean rerollers to decide the price for July-September. Japanese steels apparently offered more than US$ 100 per tonne hike when Asian market price recovers. South Korean buyers show sign to accept certain hike but they resist such wide hike. The negotiation is expected to be around FOB US$ 500 per tonne.

The export volume dropped under worldwide slow demand while the price hit record US$ 1,000 per tonne late last year. The export stopped in monthly base for some steel makers in January-March. The price decreased to less than US$ 450 in April-June under the slow demand. With the cheap price, South Korean steel maker considered potential antidumping filing against Japanese steel maker.

South Korean rerollers finished inventory adjustment and increase the demand for Japanese hot coil. Asian sheet steel market price increases when Baoshan Iron and Steel of China and China Steel of Taiwan increased the domestic price. Japanese steel makers also try to increase the price for better profitability.

However, Japanese steel makers will keep low level export volume to South Korean rerollers to avoid antidumping case from South Korean industry.