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| Korean Shipbuilders To Seek Price Revisions For Ship Plate Imports From Japan |
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There is a possibility that South Korea's major shipbuilding companies will seek negotiations with Japan's integrated steelmakers on price revisions in the existing supply contracts of ship plates for April-September shipments, it was learned in Tokyo Thursday. Behind the possibility lie two main factors, market sources believe. First, China's ship plate export prices for South Korea are thought to have come down to a level of US$400/ton FOB. Second, South Korea's various shipbuilding companies face growing cases of idle shipways in their facilities due to shipowners' requests for delivery deferrals or cancellations of tonnage on order besides limited intakes of new ship orders. The Japanese steelmakers and South Korea's major shipbuilding companies agreed on prices of around US$700/ton FOB in their ship plate deals for April-September shipments. For some Japanese steelmakers, the agreed price level is close to half the earlier price settlement covering October last year through March this year. But information is afloat that Chinese steelmakers and major Korean shipbuilders have settled their ship plate deals at around US$480/ton FOB, a price level that is lower by nearly US$200 than what the Japanese steelmakers agreed with their Korean customers on April-September shipments. It is uncertain what quantity of supply contracts the Chinese steelmakers have concluded this time. But it is assumable that the Japanese steelmakers will see their Korean customers request price revisions in the existing supply contracts of ship plates, given a large price spread between Japanese and Chinese ship plates, market observers point out. It is likely that if the Korean customers request price revisions, the Japanese steelmakers will study the contents of the Korean requests, assuming the Korean customers' assorted orders are back to normal. The Japanese steelmakers admit fairly limited orders from the Korean customers although the new contract period has taken effect. On the downside, the Korean shipbuilders still have a large stock of heavy plates each, mainly those bought from China. For the Japanese steelmakers, it is no use executing a price reduction of ship plates unless orders increase adequately. As a result, it remains to be seen what amount of assorted orders the Korean shipbuilders will place with the Japanese steelmakers. |
| last modified : Wed 22 Apr, 2009 [10:45] |
