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|Japanese Wire Rod Export Prices To Rise If Posco's Low-Priced Exports Stop|
Japan's integrated steelmakers are expected to win price increases in their deals of wire rod exports to Asian destinations for July-September shipments if South Korea's Posco stops its wire rod exports there at low prices, according to Japanese steel industry sources. |
The Japanese steelmakers are supposed to execute a price reduction in the equivalent of Y15,000/ton in the wire rod exports they negotiate this time with Japanese-affiliated automakers operating in Asian destinations. The Japanese steelmakers have already agreed to reduce steel prices by Y15,000/ton for domestic automakers in Japan.
In China, Baosteel Co Ltd has reduced its domestic sales price of wire rods for steel tire cords by Yn300/ton (US$44) for July shipments. Before the price reduction, the company is said to have executed a 15% discount on wire rod prices. The company is thought to have executed the price reduction to meet the going prices of wire rods at home, which is having little influence on the Japanese steelmakers' wire rod export deals on July-September shipments to Asian destinations.
China's tire industry is said to have achieved a recovery of its operations by 80-90% until now. Posco is conducting its deals of wire rod exports to China at low prices. But it is likely that Posco will find it unnecessary to push its low-priced wire rod exports over time, with China's tire demand under recovery.
Meanwhile, the US International Trade Commission has concluded that the US government should impose a safeguard duty on imports of Chinese tires, which will put major restrictions on China's tire exports to the USA. Therefore, there are prospects that Chinese tire exports to the USA will come down to a total of 20 million pieces in 2009 when the US safeguard duty takes effect, way down from 47 million pieces in 2008. Besides, the US safeguard duty on imports of Chinese tires threatens to affect Japanese exports to China of wire rods for steel tire cords, market sources point out. In this connection, there are many cases of Chinese tire production with Japanese wire rods for steel tire cords.
|last modified : Thu 25 Jun, 2009 [11:06]|