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CR Sheet Deals Slack In Asia; Few Posco Moves
Export deals of CR sheets are dull in Asia. South Korea's integrated steel giant Posco still shows few moves to negotiate CR sheet exports anew. Besides, some of Japan's integrated steelmakers are holding back on export sales of CR sheets for lack of exportable production. Meanwhile, users as a whole are marking time on new purchases of CR sheets while pressing hard for reduced prices in what they take.

There are signs that Posco is virtually unconcerned with new deals to export CR sheets for lack of an exportable allotment in CR sheet production from the company's works. It is understood that Posco faces a lower level of CR sheet production than usual after the company won massive export orders in API-grade HR coils for line pipes in the spring of this year. Also, Posco finds itself in less opportunity than before for CR sheet exports because of trouble after equipment repairs and a CR sheet production system focused on automotive demand, experts point out.

With a limited amount of Posco's CR sheets for export, it is natural that prices should go up in CR sheet export deals in Asia, market sources believe. So far, though, transaction prices stand at a fixed level of US$630-650/ton FOB because CR sheets from China are viewed as available at any time.

Japan's integrated steelmakers are contemplating putting prices before sales volumes in the CR sheet exports they negotiate to the rest of Asia for shipments in the October-December quarter, a slack demand season for CR sheets. As a result, the Japanese steelmakers are struggling to settle their deals at prices close to US$700/ton FOB for Q4 shipments.

South Korea's various steel rerollers are said to have lowered offers in price to US$600/ton FOB in their deals of CR sheet exports to Asian destinations. Their initial offers stood at a price level of US$630/ton FOB.

By comparison, China's top integrated steelmaker Baoshan Iron & Steel Co (Baosteel) is looking to the Middle East for its CR sheet exports, according to market sources. Baosteel's prices on offer to the Middle East are described as US$570-580/ton FOB.

Meanwhile, Taiwan's only integrated steelmaker China Steel Corp (CSC) is expected to begin its CR sheet export negotiations between this week and next on shipments to Hong Kong and Japan in November-January next. CSC may offer flat prices or certain price increases because there are no factors so far for a price reduction, suggest Japanese steel industry sources.
last modified : Tue 26 Sep, 2006 [11:21]
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