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| Posco, Baosteel Pushing EG Sheet Sales To Japanese-Affiliated Electro Makers |
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South Korea's Posco and China's Baosteel Co Ltd are eager to promote their export deals of electrolytic galvanized (EG) sheets with Japanese-affiliated consumer electronics manufacturers operating in China and elsewhere in Asia, according to market sources. Supply volumes on offer from Posco and Baosteel amount to less of a menace to Japan's integrated steelmakers. But it is understood that Posco's and Baosteel's price levels on offer are lower by nearly US$100/ton than what the Japanese steelmakers charge for their EG sheet exports to Japanese-affiliated consumer electronics companies in Asian destinations, mainly in China. As a result, there are forecasts that the Japanese steelmakers will face an obstacle in pricing in their EG sheet export negotiations with their customers for shipments from January 2009 onward. Posco's EG sheet export offensive to the Japanese-affiliated consumer electronics companies is nothing new. The company has taken a similar export drive in the past. As a result, the Japanese steelmakers are concerned about Baosteel's EG sheet export deals this time rather than Posco's. Until recently, Baosteel was a relatively unknown supplier of EG sheets to the world's markets. On their part, the Japanese steelmakers have leeway to respond so far as to Baosteel's EG sheets. In China, though, some Japanese-affiliated consumer electronics producers favor taking EG sheets from Baosteel to meet most of their EG sheet requirements. As a result, the Japanese steelmakers are keeping tabs on how Baosteel's EG sheet export deals will turn out. As far as Posco is concerned, the company is thought to have taken a positive export offensive in EG sheets this time amid a continued depreciation of the Korean won to the US dollar. For another factor, Posco is on track to bring on stream a new production facility (annual capacity: 300,000 tons) for EG sheets at its Pohang works in December 2009. The Korean integrated steelmaker may be setting its sights on assured export outlets for EG sheet production from the new facility, the Japanese steelmakers believe. |
| last modified : Mon 15 Dec, 2008 [11:37] |
