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| Japanese Integrateds To Conclude Semiannual HR Coil Contracts With ROK Users |
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Chances are Japanese integrated steelmakers will conclude semiannual contracts of HR coil exports with South Korea's steel rerollers for shipments in April-September 2007, marking the first case of its kind in HR coil exports out of Japan to South Korea. For their part, the Japanese steelmakers are taking a stable price level of US$530/ton FOB as desirable in the HR coil exports they negotiate to South Korea. As a result, they believe a longer contract term will contribute to what they consider a stable price level. For the Korean steel rerollers, the conclusion of a semiannual supply contract will reduce fears about supplies of HR coils from Japan. At present, the world's HR coil prices are on the advance and supply-demand conditions for HR coils are tightening up. In South Korea, domestic supplies of HR coils from integrated steelmaker Posco are trending downward as the company's in-house consumption of HR coils is on the increase and more of its HR coil production is intended for automotive use at home. Meanwhile, the Japanese steelmakers face tight supply-demand conditions for their HR coil production because of increased domestic demand, a situation that calls for decreased HR coil exports. In South Korea, local steel rerollers usually sign up for HR coils from China to meet a supply shortage of HR coils from Posco and the Japanese steelmakers. But there are signs that HR coil supplies from China are unstable both in quality and price, affecting the operations of the Korean steel rerollers. As a result, the Korean steel rerollers show enhanced moves to revalue supplies of HR coils from Japan. |
| last modified : Thu 15 Mar, 2007 [10:36] |
