Summary of Stainless Steel Materials Import Trend In January~July 2013

                                          IRUNIV 2013/10/03

 According to the steel section of Ministry of Economy, Trade and Industry on October 1st, even the special steel demand prospect was said, “For stainless steel , there is concern over increasing trend of the import of South Korean materials”, but this year import surely has increased as shown in the list below. It seems the exchange does not have the advantages by weak yen (strong won)?, but it is inferred that South Korea with a super special price by the policy, seems like putting on the offensive of import in Japanese market .
 From January to July, hot coil totaled 31,047 tonne with 24.5% increase, hot-rolled thick plate totaled 6,763 tonne with 47% increase, cold-rolled thick plate totaled 5,924 tonne with 30% increase, and cold-rolled thin plate totaled 51,326 tonne with 15.1% increase (All of the percentage increases are compared to the same period of the previous year). Not all, but 90% of them are South Korean materials.

(Import Transition of Stainless Steel Materials) Unit: Tonne

 If we see the import quantity of stainless steel materials by its importing country in July, ...

   (Total import quantity)(South Korean)
   Hot Coil   4,656    4,470
   Hot-rolled thick plate  1,120    1,013
   Cold-rolled thick plate     887    800
   Cold-rolled thin plate    6,266   5,779

the contents as written above, the other months also do not change a lot. For the last 10 years, South Korea is the biggest importing country of stainless steel.

 Now, South Korea has been stopping the import of Japanese stainless steel thick plate with AD. This has a right reason that it’s because Japan supplied the goods which unable to make in South Korea. The unripe developed country ‘South Korea’ who has no ears to listen, is now putting on the offensive of export in Japan. Of course, with some particular low price. On the contrary, what will happen if Japanese products go to South Korean market on a super special price? It is certain that a terrible thing (or fate) will be falsely accused.
 For reference, no matter how cheap the South Korean materials are, the domestic thick plates are used (because only the domestic products are accepted in the material authorization) in the heavy electric (such as thermal power generation) relations. The South Korean materials are not used in the energy plant relations, but it seems many of them are coming to the wholesale dealer selling.
 Now, the selling price of thick plates of South Korean materials is unexpectedly high in the Asian market, and it is higher than Japanese NSSC. The selling price estimated by each country and each producer is as below.

   NSSC Export: TP304 4H…USD3000/FOB
   TP316 4H…USD4000/FOB
   NSSC Domestic: TP304 4H…JPY380-400/kg
   TP316 4H…JPY480-500/kg
   Export of South Korean materials: TP304 4H…USD3300/FOB
   TP316 4H…USD4500/FOB
   Export of European materials: TP304 4H…USD3000/FOB
   TP316 4H…USD3500/FOB
   Export of Taiwanese materials: TP304 4H…USD2500/FOB
   TP316 4H…USD3500/FOB

 The posted price of South Korean materials is rising. However, according to the energy plant relations source, it is said that due to the South Korea's increasing number of plant orders received in Middle Eastern and European area, there's recorded a struggle of South Korea in the global market. Probably it is thought that on a case-by-case South Korea has accepted orders with discounted unit price of this posted price. Europe 316 is having a tendency of low price related to the decreasing molybdenum extra.
(IRuniverse Susan)

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