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| Integrateds In Tough EG Sheet Price Talks With Japanese-Affiliated Users |
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Japanese integrated steelmakers face tough price negotiations in their export deals of electrolytic galvanized (EG) sheets with Japanese-affiliated consumer electronics manufacturers operating in Asia, mainly in China, for shipments in October 2009-March 2010. The negotiations have yet to bring a settlement even though they have dragged into mid-October. A price increase of US$100/ton is on offer from the Japanese steelmakers. But the Japanese-affiliated consumer electronics manufacturers indicate no move to accept the price increase on the argument that demand is lagging in the field of office automation equipment. On their part, the Japanese steelmakers are contemplating taking time to negotiate the price increase. They describe the current price level of their EG sheet exports to Asian destinations as lower by nearly US$100/ton than what China's major integrated steelmakers such as Baosteel Co charge for domestic sales of EG sheets. Therefore, the Japanese steelmakers are apprehensive that they may face an antidumping case in China unless they achieve the price increase on offer. Meanwhile, it is understood that the Japanese-affiliated consumer electronics manufacturers find themselves in tough operations as various customers continue to hold back on replacement purchases of office equipment such as copying machines in the repercussions of the world's deteriorated economic situations last year. As a result, they have yet to make any bid to the price increase on offer from the Japanese steelmakers. As matters now stand, there are signs that the rest of the OA equipment manufacturers will completely "stand still" unless the affiliates of Cannon Inc agree with the Japanese steelmakers on the terms of their EG sheet deals like the case of Japan's auto industry where Toyota Motor Corp represents the champion of fellow automakers. In Asia, meanwhile, South Korea's Posco has stopped EG sheet production from its Pohang works since September as EG sheet capacity there is under an expansion from 300,000 tpy to 400,000 tpy. The production stoppage is due to last three months. In this connection, supply-demand conditions are said to be tightening as to Posco's EG sheet exports. In China, too, there are signs of tight supply-demand conditions for EG sheets because there are no fears of unsold stocks arising at home because most of the EG sheets produced are intended for regular customers with stable requirements. |
| last modified : Fri 16 Oct, 2009 [10:19] |
