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No Deal For Oct Shipments In Japanese HR Coil Exports To ROK
There is a growing possibility that Japanese integrated steelmakers will opt out of deals for October shipments in their HR coil exports under negotiation with South Korea's major steel rerollers for shipments in the October-December quarter, TEX Report learned late last week.

The Japanese steelmakers face a stalemate of their negotiations with the Korean steel rerollers because the two sides are widely divided in price ideas. The Korean steel rerollers made their formal bid last week of US$490/ton FOB. But the Japanese steelmakers reacted negatively in the contention that it is impossible to push the negotiations on the basis of the Korean bid.

For their part, the Japanese steelmakers see a domestic environment that calls for restrictions on their HR coil exports, with enhanced automotive demand for HR coils at home. Besides, Nippon Steel Corp needs to work out an allotment of HR coils for the relief of Nisshin Steel Co, an affiliate of Nippon Steel. As a result, Nippon Steel is on track to adjust delivery time or reduce amounts in its HR coil exports.
Meanwhile, the Korean steel rerollers are caught in straits of their operations. For the main reason, they are having a tough time competing with integrated steelmaker Posco in domestic sales of CR sheet products.
last modified : Thu 07 Sep, 2006 [10:38]
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