JAPAN STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD
Japanese steel prices decreased,
month-on-month, in March according to MEPS. Hot rolled coil suppliers were
forced to concede a 3.3 percent cut during negotiations. Overseas business
Large tonnages of imported commodity grade plate continued to keep the lid on
selling values. Sales to the construction industry were weak, amidst economic
gloom. However, building activity is expected to improve soon. Shipbuilding
demand was healthier.
Cold rolled coil producers failed to hold March’s transaction numbers at the
previous month’s level, due to keen competition from suppliers elsewhere in the
Asian region and shrinking demand from the automakers. However, inventories of
cold rolled coil are slowly being reduced in the general market.
Auto output fell by almost 10 percent in January, year-on-year, thus reducing
steel requirements from that sector. Orders for coated material from the
building industry are also depressed. Imports of hot dipped galvanised coil
continued to pose problems for local steelmakers who offered discounts to try to
Wire rod steel prices moved lower as a result of lower scrap costs. Market
values for medium sections and beams were reduced. Inventories at the
distributors grew in February by 3.3 percent compared with the previous month.
Rebar transaction numbers posted another decline in March as a result of cheaper
scrap and lacklustre sales. Japanese buyers secured further reductions for
merchant bar during recent settlements. Weakening sales in the building
industry, surplus stocks and cheaper raw materials contributed to the fall.
Steel Review - March Issue
Free Sample copies
of MEPS Reports
the latest copy of International Steel Review here
up for free MEPS steel news alerts