Japan's integrated steelmakers have won an increased price level of US$520/ton FOB in their negotiated HR coil exports to the rest of Asia for September shipments. Cases in point are shipments to China and Southeast Asia.
At the beginning of the July-September quarter, the Japanese steelmakers faced limited deals at a price level of US$500/ton C&F in their HR coil exports to Asian destinations. But they saw prices trend upward between late June and early July. As a result, negotiated prices have hit a level of US$500/ton FOB at last for August-September shipments to Taiwan and Vietnam and for September shipments to South Korea. Until now, even supply contracts of HR coils have been concluded at a higher price level of US$520/ton FOB as building material.
There are signs that various customers in Asian destinations admit no option but to live with a price level of US$520/ton FOB for HR coil imports from Japan. Having a strong impact are major price increases of domestic HR coil sales by China's major integrated steelmakers for August shipments as well, according to market sources. With the domestic price hikes, the new HR coil prices for August shipments translate into levels of US$540/ton before tax for products from Wuhan Iron & Steel Group Corp and US$599/ton before tax for ones from Baosteel Co Ltd. |
