| The TEX Report Topics < Steel > | |
| HOME >> Topics List >> July, 2009 >> 07 (Tue) |
| Japanese Integrateds, Korean User Agree On HR Coil Price At $500 FOB |
|
Japan's integrated steelmakers and South Korea's steel reroller have agreed on a price of US$500/ton FOB in Japanese HR coil exports to the Korean user for July-September shipments. With the benchmark price settled, it is likely that the Japanese steelmakers' HR coil export negotiations with other Korean steel rerollers will fast advance toward settlement on deals for July-September shipments, according to market sources. In this connection, the agreed price of US$500/ton FOB this time is unlikely to cause steel trade friction between Japan and South Korea in relation to what Posco charges for HR coils in its domestic sales, the Japanese steelmakers believe. Posco's present sales price of HR coils is W680,000/ton, an asking price that translates into a level of US$544/ton. By comparison, the delivered value of the Japanese export price at US$500/ton FOB will differ little from Posco's domestic price, given a certain discount its actual deals, market observers point out. A price level of US$400/ton FOB still existed at the beginning of the April-June quarter in Japanese export prices of HR coils for South Korea. Therefore, it is understood that South Korea's various steel rerollers hesitated to accept a much higher price level of US$500/ton FOB in their imports of HR coils from Japan for July-September shipments. Meanwhile, the world's HR coil prices are on the advance. In China, three major integrated steelmakers have increased domestic sales prices of HR coils for July shipments. The price increases are Yn500/ton (US$74) for products from Baosteel Co Ltd, Yn150/ton (US$22) for ones from Anshan Iron & Steel Group Corp, and Yn200/ton (US$29) for ones from Wuhan Iron & Steel Group Corp. In the case of Anshan's HR coil sales, a cumulative price increase has amounted to Yn510/ton after a price increase of Yn360/ton for June shipments. In the USA, major integrated steelmakers such as ArcelorMittal Steel USA and AK Steel Corp profess to execute domestic price increases of HR coils by US$20-30/ton for July shipments and by a further US$50/ton for August shipments. For the Korean steel rerollers, though, paying a price of US$500/ton FOB for HR coil imports from Japan could become a cost burden on their operations unless they can win an adequate price increase in the CR sheet exports they negotiate for the world's markets. For their part, the Japanese integrated steelmakers aim to recover price levels of US$500/ton FOB for HR coils, US$600/ton FOB for CR sheets, and US$700/ton FOB for hot-dip galvanized sheets in what they negotiate for July-September shipments to Asian destinations. |
| last modified : Fri 10 Jul, 2009 [11:16] |
