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|Japanese Integrateds' Wire Rod Export Talks On Q3 Shipments|
Japanese integrated steelmakers are conducting their wire rod export negotiations in earnest on shipments to Asian destinations such as China and Thailand in the July-September quarter. They have already offered what they negotiate for shipments to China. It is understood that the terms on offer call for a certain price increase toward the settlement of a flat price level on the whole. |
In China, automotive demand for wire rods is on the upswing, with construction demand arising as well. As a result, major integrated steelmakers have reacted with a domestic price increase of wire rods for June shipments. Among those steelmakers are Baosteel Co Ltd and Wuhan Iron & Steel Corp Group (Wisco). But there are fears about small and midsize steel mills resuming operations, leading to overproduction in wire rods, once local demand for wire rods perks up and transaction prices of wire rods advance accordingly. In this connection, there is information that the major integrateds such as Wisco have production cutbacks in effect for wire rods.
In Thailand, the domestic market for commodity-grade wire rods is said to have risen by the equivalent of around US$30/ton so far. Until now, a recovery of local automotive demand for wire rods has been reported. Besides, there are signs of wire rod demand arising in Thai consuming sectors other than autos.
But the Japanese steelmakers find it difficult to win a major price increase in their deals of wire rod exports to Asian destinations for July-September shipments. They admit that local demand for what they export has yet to enter a recovery phase in terms of quantity. Therefore, they are contemplating struggling to negotiate prices for Q3 shipments that will compare with the existing provisions for Q2 shipments.
|last modified : Fri 05 Jun, 2009 [10:15]|