| The TEX Report Topics < Steel > | |
| HOME >> Topics List >> November, 2008 >> 18 (Tue) |
| 50% Cutback In Finished Steel Output Pervading Asian Operations |
|
A production cutback of 50% or so is pervading manufacturers of steel products in various nations of Asia, according to information made available in Tokyo. In Thailand, Sahaviriya Steel Industries PCL (SSI) is said to be operating at 10% of a normal level. SSI finds it impossible to sell HR coils at home even after the company has lowered the asking price by the equivalent of US$200/ton to a level of US$800/ton. A further price reduction of HR coils is considered difficult for the company, given its slab import price of US$730/ton C&F. Meanwhile, there are inflows into Thailand of hot-dip galvanized (HDG) sheets at US$750/ton FOB from China and elsewhere. As a result, Thailand's Japanese-affiliated CR sheet manufacturers, who usually take SSI's HR coils for HDG sheet production, are having a tough time fighting imports of HDG sheets. As a result, they are forced to reduce their operations to 40-50% of normal levels. In South Korea, there are signs that various steel rerollers (CR sheet manufacturers) are operating at 50% of normal levels. It is understood that they have no option but to reduce what they produce in a plunging international steel market even though a depreciating won gives them an advantage in export deals. In Vietnam, CR sheet production from local steel mills stands a mere 1,000 tpm, compared with 30,000 tpm in normal production. In China, local manufacturers of containers have stopped their production in the absence of demand for containers. As a result, Taiwan's foundry production for containers is reported to have stopped since the beginning of November. Meanwhile, Japan's integrated steelmakers have a feeling that the current situation in Asia is worse than what happened during the 1997 Asian currency crisis. In this connection, they point out that the world's steel market conditions are deteriorating simultaneously with one another. |
| last modified : Fri 21 Nov, 2008 [11:16] |
