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| Virtually No HR Coil Exports From Japan To ROK For Jan'09 Shipments |
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Japanese integrated steelmakers have virtually given up an idea of negotiating HR coil exports to South Korea for shipments in January 2009, it was learned Wednesday. As of Dec 10, there were no HR coil inquiries from various steel rerollers in South Korea for shipments out of Japan in the January-March quarter of 2009. As a result, the Japanese steelmakers find it impossible to take up HR coil production for January shipments to South Korea. They were to have taken Korean orders with a deadline of around Dec 10. It is uncertain whether the Japanese steelmakers will get HR coil inquiries from the Korean steel rerollers for February shipments. In this connection, the Korean steel rerollers are expected to meet their HR coil requirements with what they hold in stock or with negotiated purchases from domestic suppliers such as Hyundai Steel Co and Posco. The Korean steel rerollers are thought to have held back on HR coil imports from Japan for January shipments due to three main factors, according to market sources. First, customers for what the Korean steel rerollers provide have yet to work out manufacturing plans for various products in and after the January-March quarter of 2009. Therefore, the customers have yet to determine necessary purchase volumes of materials such as CR sheets and hot-dip galvanized sheets. Second, the Korean steel rerollers are in no position to place new orders so far for HR coils from Japan. Third, the Korean steel rerollers are apprehensive that they may face a shortage of the fund they need to take Japanese HR coils anew because of payment time for their negotiated imports of Chinese HR coils at high prices of US$1,000/ton FOB or beyond. |
| last modified : Tue 16 Dec, 2008 [10:46] |
