JAPAN August 12 2015 3:39 PM
TOKYO (Scrap Register): Japanese steelmakers kept selling values relatively stable, in July. Domestic buyers, for hot rolled coil, held off making purchases as they anticipated price reductions in the near future, as per the MEPS International.
Japanese mills are trimming output due to elevated inventory levels. Export offers declined because of fierce competition from Chinese suppliers.
Import offers of commodity plate have decreased. Sales to the construction sector remained subdued. A surge in ship orders was recorded, ahead of the implementation of new regulations, for vessels ordered after July. These policy changes should benefit the steelmakers in the future.
Cold rolled coil inventories continued to be bloated. Demand from the automotive manufacturers was weak. Meanwhile, export volumes of coated coil were down, year-on-year. The hike in consumption tax, initiated in April 2014, is still depressing vehicle sales.
Inventory levels for structural sections were satisfactory and sales volumes increased. Selling figures are likely to be stable or down in the near term because of falling scrap costs and reduced seasonal demand from the construction sector, over the summer period.
Rebar customers are reluctant to pay more while scrap costs are reducing. Demand from the building industry is slowing. Meanwhile, merchant bar consumption from the civil engineering sector is forecast to increase in the fiscal year 2015.