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| Japanese ERW Pipe Offers To SE Asia At $800 FOB Level |
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ERW pipe exports are on offer from Japan's integrated steelmakers at a price level of US$800/ton FOB to steel stockists in Southeast Asia that have made inquiries to take Japanese ERW pipes. The inquiries call for supplies of specified sizes that tend to come under a chronic supply shortage when a surge of demand arises. But the steel stockists are demanding a lower price level of US$700/ton FOB as they expect transaction prices of ERW pipes to decline further. Behind their price requirements are South Korean steelmakers' export deals of ERW pipes at US$650/ton C&F for Singapore, market sources believe. In Southeast Asia, various steel stockists were eager to stock up on ERW pipes in the latter half of last year. But they have ended up with excessive ERW pipe stocks in an economic crisis across Southeast Asia that followed the world's sudden financial crisis. As a result, the existing ERW pipes stocks are viewed as equaling nine months of consumption, stocks that actually amount to one year of consumption amid slumping demand. Meanwhile, Thailand's PTT PLC (formerly Petroleum Authority of Thailand) is considering holding its international tender to purchase 9,000 tons of UO pipes in total. Last year, PTT planned to invite bids for its UO pipe purchase totaling nearly 140,000 tons. Later, though, PTT deferred the invitation of bids as Thai energy demand had plunged. Also, it is likely that PTT will opt to hold another international tender for the procurement of ERW pipes, albeit a small quantity. |
| last modified : Tue 21 Apr, 2009 [10:35] |
