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|Asian HR Coil Market Down For Middle Eastern, Latin American Deals|
Market prices have come down by nearly US$50/ton in HR coil exports out of Asia to the Middle East and Latin America, compared with the levels at the beginning of the July-September quarter, TEX Report learned Wednesday.|
A price of US$580/ton FOB was the norm of HR coil exports from Asia to Latin America when deals were settled for September-October shipments at the beginning of the July-September quarter. At the time, export deals for the Middle East were viewed as negotiable at US$560-580/ton FOB. At the present stage, though, a price of US$530/ton FOB may be an upper limit for both destinations, market observers suggest.
It is massive arrivals in the Middle East of negotiated HR coils imports that account for a sudden fall of prices in Asian HR coil exports there, according to market sources. The contract prices of those imports are described as a level of US$490/ton FOB. But the Asian HR coil market for the Middle East is expected to return to normal once the low-priced imports there are used up. For their part, Japan's integrated steelmakers are taking a sudden fall as a temporary phenomenon in Asian HR coil prices for the Middle East.
Meanwhile, Asian HR coil prices for Latin America is thought to have plunged after information circulated there on how matters stand with HR coil market conditions in Asia.
Until recently, various HR coil manufacturers in Asia settled deals of exports to the USA at US$600/ton FOB or more. As a result, it is understood that HR coil users in Latin America viewed the Asian HR coil market as a benchmark of imported HR coil prices in the USA. Also, the users signed up for HR coils from Asia at an offered price of US$580/ton FOB without wondering even after Asian HR coil exports to North America became somewhat difficult to shape up. The users, though, are said to have reduced bids fast for imports of Asian HR coils in the knowledge that domestic HR coil prices in China stand at a level of US$500/ton.
HR coil demand is brisk in Mexico and elsewhere in Central America for automotive and building materials. Accordingly, a sharp decline of Asian HR coil prices for Latin America is expected to prove a temporary trend, according to market sources. The sources expect Asian HR coil prices to return to normal before long in Latin America deals toward a benchmark of US$530/ton FOB, thereby meeting the going prices in Southeast Asia.
|last modified : Tue 03 Oct, 2006 [11:14]|