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| HOME >> Topics List >> May, 2009 >> 26 (Tue) |
| Additional Chinese Calls Non-GO Elec Sheets From Japan |
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Japanese integrated steelmakers have inquiries from China that represent additional requirements of non-GO (grain oriented) electrical sheets from Japan for shipments in the April-June quarter. The Japanese steelmakers are virtually done with negotiations on their exports of non-GO electrical sheets to Asian destinations, mainly to China, for April-June shipments. The Chinese inquiries stem from local customers' moves to secure more non-GO electrical sheets as they forecast increased prices of Japanese supplies for shipments in the July-September quarter. The Japanese steelmakers, though, are contemplating rejecting the additional requirements, thereby letting the customers promote their inventory adjustments of purchased materials. In China, Wuhan Iron & Steel Group Corp (Wisco) intends to reduce its domestic sales price of non-GO electrical sheets by Yn200/ton (US$30). As a result, Wisco's new price translates into a level of US$550-560/ton. The Japanese steelmakers, meanwhile, find it necessary to charge less than US$500/ton FOB for exports of non-GO electrical sheets to China if they are to compete with Wisco's new domestic price. Therefore, the Japanese steelmakers once stopped their negotiations on Chinese deals in favor of taking a wait-and-see position. In this connection, South Korea's Posco has turned inactive in negotiating its exports of non-GO electrical sheets amid an appreciating won against the US dollar, according to market sources. With Wisco's "invincible" domestic price to fight imported non-GO electrical sheets, it is understood that a floor price has formed in China irrespective of demand as to transactions of non-GO electrical sheets, market observers agree. Of China's consuming industries for non-GO electrical sheets, autos and home electronics are in advanced stages of their inventory adjustments, giving rise to demand for non-GO electrical sheets. As far as private-sector demand goes, however, replacement demand for non-GO electrical sheets as transformer material has yet to arise in plant operations. Under the existing circumstances, it is likely that the Japanese steelmakers will offer increased prices in their exports of non-GO electrical sheets to China's auto and home electronics industries for July-September shipments. In contrast, the Japanese steelmakers may have to quote decreased prices in what they meet China's private-sector demand for Q3 shipments, market sources suggest. |
| last modified : Fri 29 May, 2009 [10:35] |
