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| Stalemated Talks In Japanese HR Coil Exports To ROK |
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There are signs that Japanese integrated steelmakers face a stalemate of their HR coil export negotiations with South Korean steel rerollers for shipments in February-March 2006, according to market sources. The Japanese steelmakers are thought to have offered prices so far on a par with what South Korean integrated steelmaker Posco currently charges for domestic sales of HR coils. From January shipments, Posco has reduced its domestic sales prices by W50,000-70,000 to W500,000/ton (US$510) for high-grade HR coils and to 480,000/ton (US$489) for commodity-grade HR coils. It is understood, though, that Posco applies actual HR coil prices accordingly in separate deals with various domestic customers, which indicates much lower levels than Posco's price practices on the surface. As a result, the Korean steel rerollers are soliciting lower prices than Posco's actual domestic prices in their HR coil imports under negotiation with the Japanese steelmakers. For their part, the Japanese steelmakers are contemplating avoiding HR coil exports to South Korea at lower prices than what Posco currently charges for domestic sales. But the Japanese steelmakers find it difficult to give the Korean steel rerollers second-round offers in the repercussions of Posco's actual domestic prices that remain opaque to the Japanese steelmakers. Meanwhile, the Korean steel rerollers are expected to see separate stocks of bought-in HR coils come down to or less than appropriate levels at their works during the January-March quarter, a situation that will bring new requirements of HR coil imports from Japan, forecast Japanese steel industry sources. |
| last modified : Mon 23 Jan, 2006 [10:34] |
