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| Asian H-Beam Market To Hit $600 C&F Level |
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With a strong H-beam market in Asia, transaction prices of H-beams are expected to hit a level of US$600/ton C&F there for September shipments, according to market sources. At present, there are even bullish offers of H-beams at US$630-650/ton C&F for what electric steelmakers sell. As far as Japan's H-beam exports are concerned, their prices stood at around US$500/ton C&F for April-June shipments. Until now, they have moved up to a level of US$580/ton C&F for July-August shipments to South Korea and elsewhere. Also, they are expected to advance further to a level of US$600/ton C&F for September shipments. Behind rising prices of H-beams in Asia lie three main factors, market observers agree. First, billet prices indicate a continued upswing. Second, ferrous scrap prices are on the advance. Third, various buyers in distant areas such as the Middle East are in action to source H-beams from Asia as a result of the progress made in their H-beam inventory adjustments. Japanese export prices of billets stood a level of US$400/ton C&F in April and rose to that of US$420/ton C&F. They have moved up to a level of US$430/ton C&F in July. For their part, Japanese integrated steelmakers are slated to start their H-beam export negotiations shortly for September shipments to South Korea. In this connection, the Japanese steelmakers find themselves relieved from apprehension that they may have to give up a price increase in the H-beam exports they negotiate with Korean customers in relation to China's increased rates of value-added tax rebates for selected items of steel exports from June 1. H-beams are subject to a 9% rebate in the new rates of Chinese VAT rebates. With the VAT rebate in Chinese H-beam exports, there was speculation earlier that Korean users would demand the ensuing price reduction in their H-beam imports from China, leading to the corresponding requirement of a price reduction for H-beam imports from Japan as well. Until now, though, no price reduction is said to have taken effect in Chinese H-beam exports to South Korea. Accordingly, chances are the Japanese steelmakers will struggle to win an increased price level beyond US$600/ton C&F in their deals of H-beam exports to South Korea for September shipments, market sources believe. Meanwhile, Japanese H-beam exports to the Middle East totaled 11,998 tons in January-May 2008. In contrast, they have stood at virtually zero since the beginning of 2009. But H-beam inquiries from the Middle East have begun to flow into Japan at long last, inquiries that are believed to have followed local H-beam inventory adjustments in progress. Besides, there are forecasts that Middle Eastern inquiries for H-beam imports from Japan will surge, with the restoration of local construction demand for H-beams. |
| last modified : Wed 15 Jul, 2009 [10:45] |
