Japanese mills to cut back Q4 exports to China&East Asia
In order to keep the high price levels, the Japanese steel mills are expected to cut the East Asian and Chinese exports by 30-40%, according to reports from the industry.
In the first half of 2002, strong demand from
China for flat products raised Japanese steelmakers profits, however after the month of July they have started to reduce their exports into this country at their own will.
A 30-40% cut in the export tonnages compared to tonnage of last quarter to
China is expected.
Nippon Steel, JFE Holdings- the new merger of Kawasaki and NKK, Kobe Steel and Nisshin Steel are planning to cut their exports into
China and East Asia in different percentages in this quarter and the one to come.
The main reason lying behind this decision is to take caution against a probable definitive safeguard measure implementation by
China at the time of the expiration of the temporary measures, in November as well as keeping the existing price levels in place.
The steelmakers comment that as long as the prices keep the upward trend, they'd rather slow down the
production and exports, instead of looking into alternative markets in order to avoid rising stocks.