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| Non-Oriented Elec Sheet Prices In Asia To Bottom Out In Q2: Japanese Forecast |
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Transaction prices of no-oriented electrical sheets in Asia are expected to bottom out during the April-June quarter of 2006 in the wake of announced domestic sales prices by China's top integrated steelmaker Baoshan Iron & Steel Co (Baosteel) and Taiwan's only integrated steelmaker China Steel Corp (CSC) for shipments of non-oriented electrical sheets in the April-June quarter, forecast Japanese steel industry sources. Baosteel's announced domestic prices mark a flat price for the base grade of 800. But they indicate a reduction of Yn100/ton (US$12) for the low grades of 1000-1300 and an increase of Yn50/ton (US$6) for the high grades of 440-420 in each size of 0.35mm thick. As a result, it is understood that Baosteel aims to promote a bipolar price system of non-oriented electrical sheets. The price reduction of the low grades may be based on Baosteel's judgment that it is better to narrow price differences from the practices of Anshan Iron & Steel Group Corp (Ansteel), believe Japan's integrated steelmakers. Ansteel has already increased what it charges by the equivalent of around US$40/ton for March shipments. There are signs that domestic transaction prices of non-oriented electrical sheets will turn up in China in the April-June quarter as clear prospects exist of local coil centers completing their inventory adjustments of non-oriented electrical sheets. Until now, excess inventories of non-oriented electrical sheets at home have been held responsible for a fall of domestic prices in China. Meanwhile, South Korea's integrated steel giant Posco is expected to apply prices of US$500-510/ton C&F or US$480-490/ton FOB in its export deals of non-oriented electrical sheets for Q2 shipments to Asian destinations such as China, according to market sources. There are forecasts that Posco will seek price increases in the export deals the company negotiates in reaction to a spread of purchasing in China. As far as CSC is concerned, the Taiwanese integrated steelmaker is likely to negotiate for a price increase of around US$20 to a level of US$570/ton C&F in its exports of non-oriented electrical sheets to China. |
| last modified : Fri 03 Mar, 2006 [11:14] |
