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| HOME >> Topics List >> November, 2008 >> 17 (Mon) |
| No Asian Deals Of Japanese Stainless Exports For Dec Shipments |
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Japan's stainless steel manufacturers stay noncommittal to CR sheet export deals with wholesalers and stainless steel rerollers in Asian destinations for December shipments. On the part of those customers, they favor taking a wait-and-see position so far. As a result, there are no moves from the sellers and buyers for conducting new deals between them. The Japanese stainless steel manufacturers find it difficult to work out price terms of new export deals. Among other things, exchange rates are changing day by day besides an appreciating yen, while LME nickel prices are trending downward again after signs of a stable level. The world's stainless steel operations are under production cuts including Japan. In China, there is no doubt that major steel companies such as Baosteel Co Ltd and Taiyuan Iron & Steel Group Co have production cuts in effect of close to 50% each for stainless steel. But a fall in China's stainless steel market has yet to stop. China's major stainless steel producers have yet to announce domestic prices of what they sell for November shipments. But they are likely to reduce what they charge by Yn6,000-8,000/ton (US$882-1,176) after value-added tax, a price reduction that will meet what differs from the current stainless CR sheet market in the Wuxi area. As a result, the stainless steel majors' new asking prices are forecast to stand at a level of Yn19,000/ton (US$2,790), equating with the current Wuxi market. Meanwhile, there are reports of stainless CR sheet exports on offer to China and Southeast Asia from South Korea's Posco at US$2,600-2,700/ton C&F and from Taiwan's stainless steel mills at US$2,500-2,600/ton C&F. In Posco's case, it is understood that the company sees a favorable environment for its stainless steel exports in a depreciating won to the US dollar. South Korea's stainless steel rerollers, though, have few presences in export markets of Asia, for which two main factors are held responsible. First, Posco keeps its domestic price unchanged of stainless HR sheets. Second, the Korean stainless steel rerollers can benefit from domestic supplies of their products as a depreciation of the won precludes inflows of products from abroad. In Europe, meanwhile, local stainless steel producers face a depreciating euro. So far, though, they indicate no moves to sell into Asia, according to market sources. |
| last modified : Thu 20 Nov, 2008 [10:59] |
