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Japanese Integrateds Stop Offers In Asian Export Deals For HR Coils
Japan's integrated steelmakers have stopped offers one after another this week in their deals of HR coil exports to Asian destinations. They are contemplating making offers anew when the terms of existing offers run out.

For the main reason, the Japanese steelmakers find it necessary to watch how things go at a time when market prices for HR coils are on the rise in Asia.

Behind a rising Asian market for HR coils are the repercussions of an advance in the international market for steel slabs, according to market sources. For an indicator, Brazil's integrated steelmaker Cia Siderurgica de Tubarao is reported to sold 15,000 tons of slabs at an estimated US$390/ton FOB in an emergency deal with local steelmaker Cia Siderurgica Nacional.

In this connection, domestic transaction prices of HR coils are said to have gone up in China by the equivalent of US$20-30/ton for the past one week.

Until now, the Japanese steelmakers have stopped their offers of HR coil exports to South Korea as well. So far, South Korea is the only Asian destination whose import deals of Japanese HR coils have yet to shape up for shipments in the January-March quarter. The Japanese steelmakers tried to settle deals at US$450/ton FOB in their recent negotiations with various customers in South Korea.

Chinese steelmakers, meanwhile, are reported to have pulled up prices by US$20-30/ton in their offers of HR coil exports to South Korea. As a result, the new prices on offer are estimated at a level close to US$400/ton FOB.

For their part, the Japanese steelmakers are contemplating certain price increases when they make new offers of HR coil exports to South Korea. There are prospects of the new offers seeking a price increase of US$50/ton to US$500/ton FOB each, given the domestic price practices of South Korean integrated steelmaker Posco for HR coils. Posco's present sales price is settled at W480,000/ton for commodity-grade HR coils, a price level that translates into US$490/ton at an exchange rate of US$1.00-W980.
last modified : Mon 20 Feb, 2006 [10:41]
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