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| Japanese Price Hike In Dec CR Sheet Exports To SE Asia |
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Japanese integrated steelmakers are considering seeking a price increase of around US$20/ton to a level of US$700/ton FOB in the CR sheet exports they negotiate for December shipments to Southeast Asia. They are expected to start their CR sheet export negotiations with local customers in the fourth week of October on December shipments. In Southeast Asia, various customers have taken a wait-and-see position this week on new import deals for CR sheets in relation to China's 60th anniversary (Oct 1) of its foundation and the subsequent holidays (Oct 2-8). They are alike set to watch what prices China's Baosteel Co will apply in its domestic sales of various steel products for November shipments. Chances are Baosteel will inform domestic customers next week of its price terms of November shipments. It is likely that Baosteel will reduce the CR sheet price by Yn300/ton (US$44) for November shipments, according to market sources. Baosteel keeps the CR sheet price unchanged for October shipments, while competitors Wuhan Iron & Steel Group Corp (Wisco) and Anshan Iron & Steel Group Corp (Ansteel) have separate price reductions in effect of CR sheets for October shipments, with Wisco's Yn300/ton and Ansteel's Yn450/ton (US$66). Accordingly, it is considered necessary for Baosteel to correct its CR sheet price difference from the two competitors' practices and from the current market prices of CR sheets at home. Wisco and Ansteel are expected to do likewise after Baosteel gives its notice to domestic customers on various steel prices for November shipments. There are suggestions that the three steelmakers may hold back on a major price reduction each in favor of a flat price or a small price reduction as to CR sheets. Also, speculation has it that China's domestic CR sheet market is unlikely to fall steeply from the present level if Baosteel prices down CR sheets, while Wisco and Ansteel opt to keep their CR sheet prices unchanged, given less local stocks of CR sheets than those of HR coils. It is uncertain whether various customers in Southeast Asia will continue to hold back on purchasing in a wait-and-see position after China's national foundation anniversary and the subsequent holidays, according to market sources. Some market observers expect the Southeast Asian customers to continue taking a wait-and-see position in expectation of lower offer prices of CR sheets than what has arisen before. As to CR sheets, though, there is a predominant view that they are unlikely to mark time for a long time because strong demand exists for CR sheets in Southeast Asia and there is no slack in their purchasing intentions. Still, they are on the alert against expensive purchases of CR sheets. In this connection, the Japanese steelmakers see no need to reduce what they charge for CR sheets while finding it difficult to win a considerable price increase in the CR sheet exports they negotiate. |
| last modified : Thu 15 Oct, 2009 [10:20] |
