| The TEX Report Topics < Steel > | |
| HOME >> Topics List >> October, 2008 >> 17 (Fri) |
| Integrateds' Q4 Ordinary Steel Exports To Fall By 10% From Initial Plans |
|
It is likely that ordinary steel exports by Japan's various integrated steelmakers will fall by 10% or so in the October-December quarter, compared with their initially plans. The outlook stems from what the integrated steelmakers have explained this week to the Ministry of Economy, Trade & Industry (METI) concerning their production plans for the October-December quarter. METI described Japan's ordinary steel exports as a total of 5,823,000 tons for the October-December quarter when the ministry announced the prospects Sept 29 of the nation's Q4 demand for steel products. Since the latter half of September, though, demand for steel products has fallen off in main destinations of Japanese steel exports such as South Korea, China, Southeast Asia and the USA after a deterioration of the economic environment in each destination. The Japanese steelmakers are already done with their export negotiations on Q4 shipments. But until now, they have been approached by local customers in South Korea and elsewhere for changes in negotiated terms of transactions. As far as South Korea is concerned, local buyers find it difficult to get L/C openings for steel imports from Japan. As a result, there are signs that some Japanese steelmakers face a tough option on whether to maintain negotiated export volumes with certain price reductions or to reduce supply volumes to maintain negotiated prices. Under the existing circumstances, it is understood that the Japanese integrated steelmakers forecast more declines from initially assume levels in what they export as ordinary steel products for Q4 shipments. The declines are seen as nearly 40% for shipments to the USA; around 5% for China; and around 15% for South Korea. The initial estimates set decrements at around 25% for shipments to the USA; 0.2% for China; and 10% for South Korea. |
| last modified : Wed 22 Oct, 2008 [10:48] |
