Japan Steels Seek US$ 250-300/t Sheet Steel Hike for Offshore Transplants

Japanese integrated steel makers try to increase the sheet steel export price to transplants of Japanese appliances makers for July-December. The steels offer US$ 250-300 per tonne of hike for the relative lower price when the Asian market reaches FOB US$ 1,000 for hot rolled coil, US$ 1,100 for cold coil and US$ 1,200 for hot dip galvanizing steel. The steels already got US$ 250-350 per tonne export sheet hike for July-September shipment for other than Japanese transplants. Some transaction reached FOB US$ 1,400 for galvanizing steel for Middle East under booming construction demand. Asian sheet steel supply is still tight while some negative factors including lower air conditioner output in China emerge recently. Japanese steels have limited additional capacity due to blast furnace relining and full capacity operations. The buyers of Japanese transplants resist the additional hike after they accepted more than US$ 200 per tonne hike for April-June compared with January-March. However, the steels try to realize higher price when the hot coil and sheet steel market price is expected to increase in Asia for October-December.