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|Posco Stops Offers Of HR Coil Exports In Asian Deals|
South Korean integrated steelmaker Posco has stopped offers in its deals of HR coil exports to Asian destinations except Japan for shipments in and after March 2006, it was learned in Tokyo Wednesday. |
Behind the stoppage of offers lie two main factors, according to market sources.
First, Posco is thought to have allocated the whole of its spare export capacity for HR coils to massive exports of API grade HR coils under contract with certain pipe manufacturers in Iran and India.
Second, Posco needs to prioritize domestic supplies of HR coils in South Korea because the company is scheduled to execute periodic repairs of the No3 blast furnace and the No2 hot strip mill at its Pohang works for two months from March 5. The equipment repairs are forecast to result in decreased HR coil production for Posco, amounting to an annual level of 700,000 tons.
There are signs that Posco is attaching importance to steel supplies for energy industries with the formation of a new division for marketing of HR coils to meet the API standards. As a result, Posco is said to have negotiated massive exports of API grade HR coils to pipe mills in Iran and India in relation to Iran's IGAT IV oil pipeline project.
|last modified : Tue 07 Feb, 2006 [10:50]|