NEGOTIATOR’S TAKE: Opportunities abound for negotiating lower prices on Japanese-produced steel products.


 

12.17.15 – Japan’s domestic oversupply and slowing exports

The price of steel sheet continues to fall in Japan and has now sunk to the lowest level in 11 years due to a growing oversupply at home and a slowdown in exports caused by a deteriorating Asian market. The price of cold-rolled steel sheet, which is widely used in applications from electrical equipment to steel furniture, is at 68,000 yen to 70,000 yen ($554 to $570) per ton in Tokyo, 2.1% cheaper than in September. Hot-rolled steel sheet, which is used in construction materials, is 4% less expensive at around 59,000 yen a ton.

 


China’s overproduction continues to weaken international prices

Prices of both have fallen more than 10,000 yen since a recent peak last year and are at their lowest levels since 2004. Nearly half of domestically produced cold-rolled steel sheet is exported, but international prices are weak due to overproduction by China. As a result, October exports tumbled 15% from the prior month, but domestic shipments remained virtually unchanged because steelmakers have begun turning to the domestic market in an attempt to maintain production and sales.

Manufacturers are continuing to reduce stockpiles but there has been little change in inventories at the distribution level….Read the rest of this ProPurchaser sourced article, HERE.

Source: NIKKEI ASIA REVIEW, December 2015

Adam

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