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| HOME >> Topics List >> January, 2009 >> 15 (Thu) |
| Possible Rail Inquiries From Mideast, Africa, SE Asia For Japanese Supplies |
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There is a possibility that Japan's integrated steelmakers will get inquiries from nations in the Middle East, Africa and Southeast Asia for Japanese supplies of heavy rails in large amounts. Behind the possibility are many cancellations of the provisional agreements under which China's several steelmakers have taken heavy rail orders for export shipments to destinations in the Middle East, Africa and Southeast Asia, according to market sources. Those cancellations have much to do with China's plan to spend the equivalent of four trillion Japanese yen for two years from 2009 toward construction of new domestic railway networks measuring as long as 23,000 km overall. By a simple calculation, rail requirements are estimated to total nearly 4,500,000 tons for the rail weighing 50 kg/m. The central government intends to give priority to purchases of rails from domestic steelmakers such as Panzhihua Iron & Steel Group Co, Baotou Iron & Steel Group Co and Anshan Iron & Steel Group Corp. As a result, chances are Chinese steelmakers will find it difficult to negotiate for new deals of rail exports to the world's destinations, market observers believe. On their part, Japanese integrated steelmakers face the prospects of slack rail exports to the USA for shipments in 2009 because of an economic slump there. Besides, pressure is building on the Japanese steelmakers to make a major review of price terms in the rail exports they negotiate anew with US railroad corporations. As a result, there is speculation that the Japanese steelmakers' rail exports to the USA this year may decline to around half their export volume last year. |
| last modified : Tue 20 Jan, 2009 [12:26] |
