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|Posco, Chinese Steelmakers Stop Low-Priced Steel Exports|
South Korea's integrated steelmaker Posco and China's various steelmakers have stopped their exports of steel products at low prices, export deals that are known have gone rampant in Asia, it was learned in Tokyo Monday.|
A fierce competition among Posco and the Chinese steelmakers once brought a much lower level of US$300/ton FOB for CR sheets from the initial one of US$430/ton FOB. Until now, though, what they charge for various steel products is believed to have hit bottom, market observers point out. There are expectations for an advance in steel transaction prices in Asia for July-September shipments if low prices have completely disappeared, according to market sources.
Posco has concentrated on exports of what the company produces until now to maintain its operations for the gamut of products. The concentration requires specified volumes of exports at what amounts to the lowest price level in Asia. But the company's domestic sales prices represent a high level as compared with the going prices in Asia as a whole.
Offers at low prices, though, have begun to disappear in Posco's steel exports, an atmosphere that looks to preclude any further price reduction in the company's export deals.
It is a shift of focus to domestic deals that accounts for Posco's suspension of steel exports at low prices. The sales shift is intended to stem inflows of steel imports into South Korea. It goes with measures such as a volume discount for domestic customers.
As far as Chinese steelmakers are concerned, they are said to have stopped low-priced offers of what they export in reaction to a changing environment. The stoppage is thought to have followed the environment that promises to bring a rebound of steel transaction prices in Asia as new public investments are afoot in export destinations such as Hong Kong and Singapore.
|last modified : Fri 15 May, 2009 [10:11]|