International Steel Market Daily: High Raw Material Costs Led By Japanese Steel Mills To Significantly Increase Export Quotes For Hot Coils

Recently, Nippon Steel, the leading steel plant in Japan, announced that it will conduct maintenance on the hot coil rolling mill in February 2024, which will reduce its hot coil production by about 160000 tons. The average monthly export volume of the company is between 500000 and 600000 tons, and the export quota will be further reduced after the shutdown and maintenance of the rolling mill. Considering the high cost of raw materials and the squeeze on steel mill profits, the company has raised the export price of hot coils by $50/ton to $700/ton CFR EU and $600-630/ton CFR Asia, with shipments scheduled for January 2024.
But overall, the current situation of Japanese steel exports is good. Although the local automotive industry is showing a steady recovery trend, due to the extension or cancellation of some large-scale project schedules, the construction industry may remain sluggish, leading to a suppression of local steel demand. Local traders are actively seeking exports. In October, Japan exported 2.6 million tons of steel, a year-on-year increase of 8.7%. Looking at different regions, Japan’s export volume to the European Union was 128000 tons, a year-on-year increase of 6%, achieving the sixth consecutive month of growth; The export volume to ASEAN was 897000 tons, a year-on-year increase of 3.3%, marking the first increase in two months.