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| Japanese Standoff From Chinese Deals For Non-GO Elec Sheets |
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Japan's integrated steelmakers have no option but to mark time on what they negotiate anew for exports of non-GO (grain oriented) electrical sheets to China. For the main reason, they find it impossible to meet the going prices in local transactions of non-GO electrical sheets. The going prices are said to have fallen to a level of US$520/ton so far. At present, conducting deals in China of non-GO electrical sheets are local steelmakers and South Korea's Posco. Various steelmakers are poised to reduce prices considerably when they firm up supply contracts although quoted prices are unchanged. As a result, a price level of US$600/ton has already disappeared, while the going prices have declined to a level of US$520/ton so far. In China, local demand has begun to arise for electronics components such as LCD TV panels. The situation indicates a recovery of demand for home electronics in the wake of the central government's policy to subsidize consumers' purchases of home electronics. The current purchases are focused on low- or medium-grade home electronics which local consumer electronics companies can produce. As a result, it is understood that China's domestic demand for non-GO electrical sheets is on track to a recovery as well, an environment that will lead to stopping a price-cutting competition over time in deals of non-GO electrical sheets. In this connection, it is important for Baosteel Co Ltd and other domestic steelmakers to hold back on a price reduction of non-GO electrical sheets, market sources point out. Accordingly, it is a matter of attention whether Baosteel will keep the asking price unchanged for non-GO electrical sheets when the company serves notice on its domestic sales prices of various steel products for June shipments. |
| last modified : Thu 30 Apr, 2009 [10:50] |
