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| Sino-Korean Ship Plate Deals At $840 C&F For Jan'09 Shipments |
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China's major integrated steelmakers such as Baosteel Co Ltd have settled their export deals of first-class ship plates with South Korea's major shipbuilding companies at US$840/ton C&F for January shipments in 2009, according to information made available in Tokyo. Also, other Chinese steelmakers are said to have contracted their exports of second-class ship plates with the Korean shipbuilding companies at US$750/ton C&F for January shipments next year. The negotiated prices in Sino-Korean ship plate deals this time are seen as levels of US$800/ton FOB for first-class ship plates and US$700/ton FOB for second-class products. Various Chinese steelmakers firmed up their ship plate exports to South Korea at US$1,200/ton C&F or beyond for October-December shipments this year. Then, the Korean customers asked the Chinese steelmakers for price adjustments (price reductions) of ship plates at a time when domestic prices of heavy plates were falling in China. As a result, the Chinese steelmakers are reported to have set the adjusted prices of December shipments at US$900/ton C&F for first-class ship plates and US$700/ton C&F for second-class products. If the adjusted figures are correct, it follows that what the Chinese steelmakers have negotiated on price for January shipments amounts to a reduction of nearly US$100/ton, compared with the adjusted prices of December shipments. Also, it is understood that the negotiated prices of January shipments indicate a reduction of nearly US$400/ton, compared with the initially settled prices for October-December shipments. Meanwhile, Japan's various integrated steelmakers are expected to start their ship plate export negotiations with South Korea's major shipbuilding companies from the latter half of January next year on shipments in the first half of fiscal 2009 (April 2009-March 2010). In this connection, the Japanese steelmakers see no immediate influence on them from the Chinese prices of ship plate exports to South Korea for January shipments. The Japanese steelmakers have already negotiated ship plate supplies with the Korean shipbuilding companies for January-March shipments next year. Still, it is likely that the Korean shipbuilding companies will seek a major price reduction in the ship plate imports they negotiate with the Japanese steelmakers for April-September shipments next year on the basis of what the Korean shipbuilding companies have agreed with the Chinese steelmakers for January shipments. On the part of the Japanese steelmakers, they find it necessary to make a certain price adjustment when they negotiate for ship plate contract renewals with the Korean customers. |
| last modified : Tue 06 Jan, 2009 [10:30] |
