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| HOME >> Topics List >> January, 2009 >> 26 (Mon) |
| East Asian Integrateds' Low-Priced HR Coil, CR Coil Exports To SW Asia |
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Major integrated steelmakers in East Asia have settled spot export deals of HR coils and CR coils at low prices for shipments to nations in Southwest Asia such as Bangladesh and Pakistan. Negotiated prices are viewed as level of US$450/ton FOB for HR coils and US$550/ton FOB for CR coils. In East Asian nations such as Japan an South Korea, demand for steel products has plunged since the latter half of last year, mainly demand for automotive materials. Major integrated steelmakers in East Asia are reacting with production cutbacks at their works. In Japan, the production cutbacks have gone into effect since the autumn of last year. In South Korea, Posco started to reduce its production in December last year, a late start that has yet to catch up with falling demand, leading to increased stocks of steel products. It is understood that some integrated steelworks in East Asia are even piled high with products in their properties. As things now stand in East Asia, major integrated steelmakers there have opted for "distress sales" in spot exports of HR coils and CR coils to selected destinations in Southwest Asia, market observers point out. Negotiated export volumes so far are seen as around 10,000 tons per deal for February or March shipments. In this connection, there is a possibility that such low-priced exports out of East Asia will expand into distant areas such as the Middle East, according to market sources. |
| last modified : Thu 29 Jan, 2009 [10:12] |
