Japan’s steel exports were at highest levels of 37.75 mnt 2008 and export offers that time for hot-rolled coils (HRCs) were around $1000/t. But offers started plummeting to $400-500/t levels after the lehman brother crisis, which took place in September 2008.
Since 2008, export volumes have declined by about 6 mnt to 31.5 mnt in 2022, although the Japanese currency has depreciated to JPY 140 per dollar. During the time, the destinations and exported products have also changed. For instance, semi-finished products exports stood at 3 mnt in 2022 against that of 5 mnt in 2008.
Exports of high-priced cold-rolled and hot-dip galvanized steel sheets have decreased significantly due to the efforts of domestic steelmakers, but exports of HRCs will increase by about 3 mnt compared with 2008.
Even after low exports, there is a tendency to avoid Asian low-price markets as much as possible and increase the share of relatively high-priced markets such as Europe.
Exports of heavy plate are shifting from general-purpose products, which currently cost less than $600/t, to high-value-added products. Contracts have also been signed at high prices for wear-resistant steel plate used in mining machinery and for 9% nickel steel, which is increasingly in demand for LNG tanks.
Electrical steel plates and steel pipe have shown a strong export performance with a similarly high unit price per dollar, but the unit price of iron ore and coking coal per dollar remains high, making it difficult to secure margins and expand quantitatively. However, there are signs that global markets have bottomed out.
Nippon steel (NS) and JFE Steel are implementing structural reforms to their production systems, and steel exports are likely to shift further to high-priced products next year.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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