Japan Billet Export Price Hits First Drop in 2 Months

Japanese electric furnace steel makers’ billet export price decreased for the first time in 2 months. The price is 3,000 yen per tonne or around 8% lower than recent peak in January end due to buyers’ pressure for lower price in Asian countries under lower ferrous scrap price. The price could decrease more due to competition with lower priced Russian billet.

Japanese billet export price reached FOB 36,000 yen per tonne for South Korea and 38,000 yen for Vietnam in January after the price dropped to around 30,000 yen for China at end 2008. The price, however, decreased to just less than FOB 33,000 yen for Taiwan for April shipment when Russian billet price is C&F 28,000 yen due to lower scrap price.

Japanese concrete reinforcing steel bar export market is very thin recently. The price decreased to FOB 42,000-43,000 yen per tonne in February while the price recovered to 45,000 yen in earlier the year. Japanese rebar makers are reluctant to get export order at loss making price level. A rebar maker source said most of the makers are not willing to export at the low price.

The slump for rebar and billet export could take more time to recover impacting on Japanese electric furnace steel makers’ profitability.