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| Japanese Integrated Sells 10,000 Tons H-Beams To ROK For June Shipment |
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An integrated steel company of Japan has negotiated 10,000 tons of H-beam exports to South Korea for June shipment, an export deal that marks a high monthly level of H-beam shipments there. The company is seen as Nippon Steel Corp. Since September last year, no case has arisen of the monthly volume beyond 10,000 tons in H-beam exports out of Japan to South Korea. Also, the current deal represents a rare settlement by a single Japanese integrated steelmaker. Japan's H-beam exports to South Korea totaled 202,006 tons in 2007, averaging 17,000 tpm. They totaled 164,445 tons in 2008, averaging 14,000 tpm, with the monthly volume hitting 31,000 tons in January 2008. But they fell off to a total of less than 1,000 tons in November last year after 11,000 tons in August. This year, they stood at low monthly levels of 2,800 tons in January; 3,300 tons in February; and 8,000 tons in March. A single Japanese supplier's H-beam export deal of 10,000 tons for South Korea this time has become a topic in South Korea. In this connection, there are some voices of concern that the H-beam export deal threatens to develop into trade friction between Japan and South Korea like the cases of steel products such as HR coils and deformed bars. Nevertheless, Japan's steel industry sources are watching the situation calmly in the believe that the H-beam exports under contract are unlikely to touch off trade friction between Japan and South Korea. For the main reason, the sources believe that the negotiated H-beam exports in point are only intended to make up for lost H-beam supplies from China to South Korea, which will bring no distortion of H-beam supply-demand conditions in South Korea. China's H-beam exports to South Korea totaled 600,000 tons in 2008, averaging 51,000 tpm. But they have declined since December last year. This year, they fell off to monthly levels of 1,000 tons in February; and 12,000 tons March, with a cumulative 19,000 tons in the January-March period. In the background, China's various steelmakers are thought to have felt the need to reduce their H-beam exports in enhanced construction demand for H-beams at home. Besides, it is understood that the Chinese steelmakers reacted negatively to South Korean buyers' deteriorated payments for H-beam imports from China because of South Korea's supply shortage of US dollars. Meanwhile, a massive Japanese export contract this time of H-beams for South Korea amounts to giving tit for tat in a surge of H-beam imports into Japan from South Korea, market observers point out. South Korea's H-beam exports to Japan totaled 21,700 tons in 2008. This year, they hit a cumulative 17,000 tons in the January-March alone, with a total of 6,200 tons in March, a surge of H-beam inflows into Japan that could throw the Japanese H-beam market into confusion. |
| last modified : Tue 19 May, 2009 [10:43] |
