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| Export Talks On Q4 Non-GO Elec Sheet Deals With Non-Japanese Users |
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Japanese integrated steelmakers are expected to start negotiations at the end of August on their exports of non-GO (grain oriented) electrical sheets to non-Japanese consumer electronics companies in Asian destinations for shipments in the October-December quarter. Indications are that the non-Japanese customers will attach importance to assured supply volumes of non-GO electrical sheets rather than price terms as the Japanese steelmakers have no spare capacity in what they export. In the negotiations this time, it remains to be seen what export volume Nippon Steel Corp (NSC) can provide in the aftereffects of a recent fire in its Yawata works. The fire broke out in a conveyor belt unit connected to the No5 coke oven. NSC is quoted as saying that the company has yet to make sure of an exportable volume for non-GO electrical sheets. The non-Japanese customers are willing to take offer prices as they are if supply volumes of non-GO electrical sheets meet to desired levels, according to market sources. As a result, the Japanese steelmakers see an environment that will permit a price increase of US$100-200/ton if they can allocate sufficient quantities for the non-Japanese customers for October-December shipments. If the price increase goes through, Japanese export prices of non-GO electrical sheets will exceed a level of US$1,300/ton FOB in Asian deals for Q4 shipments. The Japanese steelmakers have won a price increase of US$250-300/ton in negotiated exports of non-GO electrical sheets to the non-Japanese customers for July-September shipments. For April-September shipments, a cumulative price increase has hit US$450-500/ton. Meanwhile, the Japanese steelmakers are scheduled to begin their negotiations next week on export contract renewals of GO electrical sheets for shipments to Europe and USA in 2009. Some Japanese steelmakers will offer a price increase of US$1,000/ton or more, while others will offer a price increase of US$1,500-2,000/ton, according to market sources. Also, the sources point out that some Japanese steelmakers will propose annual supply contracts as usual, while others will negotiate for half-year contracts to meet uncertain prospects of raw materials costs next year. |
| last modified : Wed 20 Aug, 2008 [11:31] |
