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| Latin American Inquiries Stop In Japanese HR Coil Exports |
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Inquiries from Latin America have stopped in what Japan's integrated steelmakers negotiate for HR coil exports, a situation where local customers are thought to have taken a wait-and-see position. As a result, it is likely that the Japanese steelmakers will give up the idea of exporting HR coils to Latin America for a while. At present, HR coil exports out of Mexico, Venezuela and Russia are competing intensely for shipments to destinations in Latin America. Offer prices from the three supply sources are viewed as a low level below US$400/ton C&F so far. But there are signs that the offer prices will come down further at a time when various users favor marking time amid stagnant economic conditions in Latin America. Under ordinary circumstances, HR coil exports out of Mexico are intended for the USA. With an economic downturn in the USA, though, Mexican steelmakers find it difficult to negotiate HR coil exports there. As a result, they are setting their sights on alternative HR coil exports to the rest of Latin America. It will take a revival of steel demand in the USA to put HR coil market conditions in Latin America on a recovery track, experts point out. It could be yearend 2009 or February-April 2010 at the earliest before HR coil demand in Latin America shows a solid recovery, given a slow recovery of steel demand in the USA, Japanese integrated steelmakers believe. |
| last modified : Mon 20 Apr, 2009 [11:09] |
