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| Japanese Sense Of Relief For Wisco's Domestic Price Hikes |
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Japan's integrated steelmakers are feeling a sense of relief in the knowledge that China's Wuhan Iron & Steel Group Corp (Wisco) is contemplating executing domestic price increases of products such as tinplate and non-GO (grain oriented) electrical sheets for February shipments. Until now, the Japanese steelmakers have found themselves distressed by what they describe as "a meaningless domestic price reduction" by China's major integrated steelmakers in their tinplate sales. Among other things, the Japanese steelmakers have come under pressure to reduce prices in the tinplate exports they negotiate. The Japanese steelmakers admit a similar hardship in their exports of non-GO electrical sheets. As the Japanese steelmakers see it, Wisco is thought to have concluded that a domestic price reduction of products such as tinplate and non-GO electrical sheets doesn't necessarily bring assured sales volumes. It is understood that Baosteel Co Ltd, too, has drawn a similar conclusion in what the company sells at home, the Japanese steelmakers believe. The Japanese steelmakers expect China's major integrated steelmakers to continue hiking domestic prices of tinplate and non-GO electrical sheets from March shipments onward. In this connection, the Japanese steelmakers are set to hold back on new offers for a while in their exports of tinplate and non-GO electrical sheets. Also, they are considering making new offers for export sales including price adjustments when the Chinese steelmakers' domestic sales prices move up to a specified level. At present, Wisco's domestic price of non-GO electrical sheets translates into a level of US$615/ton FOB before tax. By comparison, the current prices of Japanese non-GO electrical sheets for export stand at a level of US$1,000/ton FOB. |
| last modified : Wed 14 Jan, 2009 [11:30] |
