Chances are Japanese integrated steelmakers will settle their deals of HR coil exports to South Korea at a price level of US$500/ton FOB for July-September shipments, with strong HR coil inquiries from various steel rerollers there. At present, the Japanese steelmakers are holding their negotiations in earnest to firm up what they provide for local steel rerollers.
There are three main factors behind the outlook that the Japanese steelmakers will achieve a major price increase of US$100/ton to a level of US$500/ton FOB in their HR coil exports to South Korea this time, according to market sources. First, the world's export prices of slabs from Brazil and elsewhere have moved up to a level of US$400/ton C&F for delivery in East Asia. Second, transaction prices of HR coil derivatives such as CR sheets and galvanized sheets are way up in Asia, an environment that permits a price increase of around US$100/ton for HR coils. Third, Japan represents the most advantageous source of supply in Asia to meet a sudden rise in HR coil demand at a time when less HR coils are available from China than before.
In the Japanese steelmakers' HR coil exports, there are increased cases of offer prices at US$500/ton FOB or beyond for shipments to Southeast Asia. There are signs that South Korea's Posco is seeking a similar price level in its HR coil exports there. As to CIS HR coils, there are even offer prices beyond US$500/ton C&F for delivery in East Asia, market sources point out. |
