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|$80-100 Japanese Price Hikes In Q3 Chinese Deals For Non-GO Elec Sheets|
Japanese integrated steelmakers are expected to offer price increases of US$80-100/ton for the low-grade product when they start negotiations next week on their exports of non-GO (grain oriented) electrical sheets to China for July-September shipments. Subject to the negotiations at first are deals with local and Taiwanese-affiliated consumer electronics companies. If the price increases are settled, the new prices will recover to a level of US$600/ton FOB for the low grade, according to market sources. |
In China, Baosteel Co Ltd has executed a domestic price increase of non-GO electrical sheets by Yn450/ton (US$66) for July shipments, a price increase that applies mainly to the low-grade product. As a result, the Japanese steelmakers are considering negotiating for at least Baosteel's new domestic price plus US$20 in their export deals of non-GO electrical sheets for July-September shipments to China.
Baosteel raised its domestic sales prices of non-GO electrical sheets by Yn550/ton (US$81) for January-March shipments this year. But the company has reduced the sales prices by Yn400/ton (US$59) for April-June shipments.
Accordingly, there are suggestions that Baosteel may execute a domestic price reduction of non-GO electrical sheets again, presumably for August shipments.
With Baosteel's domestic price increase for July shipments, though, the Japanese steelmakers are expected to price up their exports of non-GO electrical sheets by US$80-100/ton for July-September shipments to China.
In China, it is Anshan Iron & Steel Group Corp (Ansteel), not Baosteel, that usually forms a low of domestic prices for non-GO electrical sheets, market sources point out. Therefore, the Japanese steelmakers are quoted as saying that they will work out the final offers of what they export for Q3 shipments to China after a domestic price of Ansteel becomes clear for July shipments.
|last modified : Tue 23 Jun, 2009 [10:44]|