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| $30 Japanese Markup In Q3 Asian Deals For TMBP Exports |
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With a price increase of US$30/ton on offer, Japanese integrated steelmakers have begun negotiations on their TMBP exports to Asian destinations for shipments in the July-September quarter. There is a strong possibility that the Japanese steelmakers will see the price increase take hold in the TMBP exports they negotiate because there are no offers in tinplate exports out of South Korea to the Middle East and elsewhere, according to market sources. In the case of Indonesia's PT Latinusa, the tinplate manufacturer is expected to accept the TMBP price increase on offer from the Japanese steelmakers. For the main factor, Latinusa is done with its TMBP inventory adjustment before the demand season for tinplate in Indonesia. The July-August period before Ramadan represents the nation's demand season for canned foodstuff. Meanwhile, South Korea's Posco revised its domestic sales prices of steel products from May 15, with a price reduction of W150,000 to W850,000/ton for TMBP. As to Posco's export sales, TMBP is subject to a virtual price increase in the wake of a much more appreciation of the won against the US dollar than before. For April-June shipments, Posco's export price of TMBP translates into US$666/ton at an exchange rate of US$1.00-W1,500. For July-September shipments, though, the export price translates into US$685/ton. Besides, Posco indicates the move to file an antidumping case against the Japanese steelmakers in South Korea's HR coil imports. Accordingly, the nation's various tinplate manufacturers favor stopping their export negotiations out of apprehention that they may find it difficult to secure both HR coils and TMBP from Japan. As matters now stand, the Middle East is devoid of tinplate offers from South Korea at present although South Korean tinplate producers were promoting positive exports there until recently. Accordingly, there is a probability that Southeast Asia's various tinplate producers will respond with alternative exports to the Middle East, which will permit increased prices in Japanese TMBP exports to Southeast Asia, market sources forecast. |
| last modified : Wed 03 Jun, 2009 [10:24] |
