Japanese steelmakers' exports of flat steel products are
expected to fall 10-20 percent in July-Aug from the previous quarter due to a
surge in the yen and sluggish sales to South Korean firms, their biggest
customers, traders said.
But they also expect a recovery in the quarter after that as
car production picks up.
Japanese steelmakers, the world's largest exporters in 2010,
saw their exports of flat steel products hot-and cold-rolled coils and galvanized
sheets fall by 11 percent to 4.3 million tonnes in April-June.
Low-priced exports from China dragged down the market and
the yen's steep rise against the dollar and other major Asian currencies made
their products less competitive. Exports were also hit by a fall in global car
production after Japan's March earthquake disrupted the supply of parts.
“A 10-20 percent fall in exports of steel sheets is
very likely this quarter. They've found it very hard to strike deals because of
a wide price differential,” said an official at a Japanese trading
company, who declined to be identified.
Many industry experts expect a jump in Japan's car output
later this year will keep Japanese steelmakers busy and operating at full
capacity in the October-March period as they need to boost supply to domestic
manufacturers. Even so, trading companies expect there will be leeway for
exports and the companies will step up exports if prices are attractive.
Source: Reuters
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