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| Japanese Integrateds To Start Rail Export Talks On Shipments To USA |
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Japanese integrated steelmakers are expected to start negotiations in early February on their deals of rail exports to the USA for shipments in the first half (April-September) of fiscal 2009. Indications are that the Japanese steelmakers will work out the terms of offers shortly for the negotiations to meet the existing inquiries from major US railroad corporations. In the past, an annual supply contract was the norm of the Japanese steelmakers' rail exports to the USA. Of late, though, the Japanese steelmakers have shifted to semiannual deals in what they export there. In the USA, the economic situation is in bad shape due to the financial crisis. As a result, domestic distribution volumes of commodities are thought to have fallen considerably, leading to decreased transports by railroad. In the October-December quarter of last year, transports by railroad were reported to have come under a pronounced decrease. Given a fall in transports by rail in the USA, there was a predominant feeling in Japan's steel industry sources that US demand for rail imports from Japan would decline in Japanese fiscal 2009. But the existing inquiries from major US railroads for Japanese rail supplies are described as similar to what occurred last year. Therefore, it is understood that the existing inquiries call for total supplies of 60,000 tons or so. In the case of last year, the Japanese steelmakers' sales volumes of rail exports to the USA are estimated to have totaled 120,000-130,000 tons. With falling prices of ferrous scrap in the USA, there is a possibility that local electric steelmakers have reduced what they charge for domestic sales of rails. As a result, chances are the Japanese steelmakers will face tough negotiations on prices in their rail exports to the USA for April-September shipments. There are forecasts that the Japanese steelmakers will seek a flat price level in what they negotiate with the US railroads. |
| last modified : Mon 02 Feb, 2009 [11:32] |
