Japan Steel Sheet Export Likely to Keep Low for Apr-Jun

Japanese steel sheet export by integrated steel makers maintains low. Production activities of overseas users stay slow and sales competition among Asian steel makers becomes severer. Overseas market price of hot coil is currently below US$ 400 per tonne. Japanese steel makers are forced to skip some offers at low prices when makers are concerned of cost up caused from output reductions.

Bao steel, Chinese largest steel maker, announced to reduce its sheet selling price by 200 yuan (about 3,000 yen) for domestic users in May. Ban Steel lowers the selling price for 2 months in a row. Chinese steel market price of long products is said to have hit the bottom. Meanwhile, the market price of flat products continues decreasing.

South Korean re-rollers have progressed inventory adjustment and some of them will increase the output from April. However, South Korean steel sheet purchasing price is expected to decrease more when Taiwanese and Chinese steel makers offer low-price hot coils.

Japanese integrated steel maker source said overseas users tend to avoid 3-month price negotiations for April-June with an expectation that sheet price could lower. South Korean re-rollers are offering around FOB US$ 400 per tonne to Japanese steel makers. Some steel makers will stop April shipment because of too low offer price.

Export price negotiation between Japanese steel makers and electric appliance makers is also hard. Some makers had approved price cut by US$ 200 per tonne for January-March shipment The price is likely to decrease more for April-June in severe market competition.