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| Japanese Integrateds To Quote HR Coil Exports At $640-650 FOB For ROK |
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Chances are Japanese integrated steelmakers will quote prices of US$640-650/ton FOB in their HR coil export negotiations on shipments to South Korea in the April-June quarter of 2005. The negotiations are expected to start in April. At the moment, the Japanese steelmakers are in various stages of HR coil export deals at US$630-650/ton FOB on shipments to Southeast Asia in the April-June quarter. Settled or under negotiation are price increases of US$50-70/ton. On the contrary, the Japanese steelmakers are slow to conduct negotiations on their HR coil exports to South Korea for Q2 shipments. For the main reason, many of them have supply contracts for South Korea that cover up to April shipments after the settlement of their negotiations on Q1 shipments. Under the existing contracts, the Japanese steelmakers are supposed to provide HR coils for South Korea at US$600/ton FOB for April shipments. But negotiated prices for March shipments vary. Some deals are settled at US$570/ton FOB, and others at US$590/ton FOB. Pricing leader JFE Steel Corp is committed to April shipments at US$600/ton FOB. With continued price increases for SE Asia, the Japanese steelmakers are poised to seek a price increase of US$40-50/ton on the settlement for April shipments when they negotiate HR coil exports to South Korea for May shipments onward. Meanwhile, transaction prices of HR coils continue falling in the West, with lagging inventory adjustments. There are expectations that HR coil prices will rebound once the inventory adjustments finish since demand for HR coils holds steady, according to market sources. By comparison, HR coil prices are on the upside in Asia. Major integrated steelmakers such as South Korea's Posco Co, China's Baoshan Iron & Steel Co, and Taiwan's China Steel Corp have already raised what they charge for domestic shipments of HR coils. |
| last modified : Thu 31 Mar, 2005 [10:44] |
