With the gradual recovery of demand in industries such as automobiles and electronics manufacturing in China and South Korea, Japan’s steel exports are also on the fast track of recovery. While rivals in other Asian neighbors are busy expanding their production capacity, Japanese steel companies have focused on the development of new export markets. Although they also have their own concerns about the problem of excess capacity, avoiding excessive competition through diversification of the export market has become the unanimously pursued goal of Japanese steel companies.
As Japan’s second-largest steel producer, JFE Steel has started to allocate its personnel to four key development areas in the Middle East, India, Indochina, and Africa since September of this year, and hopes that this will be a heavy plate. And the establishment of new sales channels for thin plates further strengthens the company's overseas business.
Another Japanese steel company, Nisshin Steel, is also planning to establish a joint venture stainless steel pipe plant in India in 2010. If local demand growth meets expectations, the company will also push its automotive steel products to the local market in the future.
In addition, this spring Kobe Steel of Japan also won a large number of orders for construction steel from Bangladesh.
According to statistics from the Japan Iron and Steel Federation, Japan’s steel exports in August were 3.41 million tons, an increase of 3.4% year-on-year. This is also the first time in 11 months since the country’s export data exceeded the level of last year, and it was decadent before sweeping. Of particular concern is the fact that steel exports to Korea and China have increased by 16.4% and 9.5% respectively, thanks to the economic stimulus policies that the Chinese and Korean governments have spared.
The outstanding performance of Japanese steel companies in the export market contrasts sharply with the environment in which Chinese and Korean steel companies are concerned about overcapacity.
South Korean steel giant Posco began construction of a large blast furnace with an annual capacity of 5 million tons in July this year; another Korean steel maker Hyundai Steel will also build two new electric furnaces next year. At the same time, Chinese steel companies are also engaged in similar capacity expansion projects.
According to an executive who is leading a steel company, the total East Asian steel production capacity will increase by 60 million tons in the next three years.
In fiscal year 2008, Japan's JFE Steel Company exported approximately 4.1 million tons of steel to South Korea, which accounted for approximately 42% of the total steel exported by Japan to South Korea. However, with the continuous expansion of Korean counterparts' steel production capacity, senior executives at JFE Steel have felt the crisis approaching. "In the next 4 to 5 years, steel exports to the Korean market will be halved. We must fully prepare for this."
With the increasing difficulty of domestic demand development in Japan, steel exports will play an increasingly important role in maintaining the sustainable development of steel companies in the future. The dependence of domestic steel companies on exports will also increase year by year.
Japanese steel companies are full of eagerness for new export markets, but at the same time they are fully guarding against the accompanying potential risks and minimizing the losses caused by the sharp fall in steel prices and the sudden drop in exports.

Function Switch

Function Switch,Window Lifter Switch,Window Regulator Switch,Power Window Regulator Switch

WENZHOU TIQNIU ELECTRICAL CO.,LTD. , https://www.tianqiuelectrical.com