Major Japanese steel-makers are planning to increase flat steel prices for June shipments both in domestic and export market. Optimistic domestic demand, increase in logistics and subsidiary cost has compelled Japanese steel-makers to raise flat steel prices and pass on the escalated cost to consumers.
Recently NSSMC (Nippon Steel and Sumitomo Corporation) has decided to raise flat steel prices in retail market by Yen 3000/MT in the month of June.
Meanwhile, major steel mills in Japan are planning to undergo for maintenance and repair facilities in upcoming days which will create supply shortage in domestic market. This in turn will raise export offers of flat steel in near term. However steel mills are quoting HRC exports offers which is more than USD 650/MT FoB basis.
Also, Chinese HRC export offers remain on lower side despite increase in their domestic prices. Thus Japanese mills are grabbing the opportunity by importing HRC at cheaper prices from China. Thus increasing the cost of Cold rolled coils amid strong domestic demand.
Japan Flat steel exports in Q1CY18 – According to latest customs data released, Japan flat steel exports which includes 7208 (HR coils /Plates), 7209 (CR coils),7225 (Electrical sheets),7210/7212(GP/GC) witness decline by 4% in Q1CY17.
Country has exported 6.35 MnT of flat steel in Q1CY18 which was 6.62 MnT in similar quarter of previous year.
Although on monthly premise nation’s flat steel exports increases by 14% in Mar’18 to 2.24 MnT against 1.96 MnT a month ago.However the same was down by 2% in Mar’18 against 2.29 MnT in Mar’17.
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