JAPAN March 09 2015 10:01 AM
TOKYO (Scrap Register): Competition from overseas continued to be a problem in Japanese steel prices. Hot rolled coil selling figures remained unchanged month-on-month during February, according to MEPS International.

Large tonnages of imported commodity grade plate continued to keep the lid on selling values in Japan, where sales to the construction industry were weak amidst economic gloom. Shipbuilding demand was healthier.

The producers, again, held cold rolled coil transaction numbers, in February, at the previous month’s level. We noted keen competition from suppliers elsewhere in the Asian region. Demand from auto makers shrunk. However, inventories in the general market were slowly being reduced.

Orders for coated steel from the building sector weakened. The vehicle makers were hit by falling sales, thus reducing their steel requirements. Imports of hot dipped galvanised coil continued to pose problems for local steel-makers.

Wire rod transaction figures remained the same month-on-month, in February, despite low scrap costs. Meanwhile, import volumes of structural sections continued to climb. Despite this, selling values were maintained.

Kyoei Steel, the largest rebar maker in Japan, planned to keep February contract prices flat, despite tumbling scrap costs. However, in the marketplace, transaction numbers posted a small decline.

Merchant bar customers won a small concession during February settlements. Weakening sales to the building industry, surplus stocks and cheaper raw materials contributed to the fall.