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Integrateds To Begin HR Coil Export Talks With China's Container Producers
Japan's integrated steelmakers are expected to begin negotiations shortly on their export deals to provide container-grade HR coils for China's container manufacturers, assuming that shipments take place in the October-December quarter of 2006, TEX Report learned Wednesday.

Chances are the Japanese steelmakers will offer what they export at around US$650/ton C&F, a price level that compares with the settlement for shipments in the July-September quarter, market sources believe.

The Japanese steelmakers find it difficult to quote increased prices because the October-December quarter marks an off season for container demand. In fact, the Japanese steelmakers see limited amounts of HR coil inquiries from China's container producers for Q4 shipments.

In this connection, there is a possibility that the Japanese steelmakers will stop their negotiations this time if they have to reduce prices for firm deals.

The Japanese steelmakers have gotten a recovery of prices in their deals of HR coil exports to the Chinese container producers since the beginning of this year. At the same time, import demand for Japanese HR coils has perked up among the Chinese container producers. As a result, the Japanese steelmakers have HR coil supplies under contract with the Chinese customers at around US$650/ton C&F (a price level of US$630/ton FOB) inclusive an extra for Q3 shipments. The base price is described as a level of US$570/ton FOB.
last modified : Tue 12 Sep, 2006 [10:24]
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