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| Uncertain Prospects Of Japano-Korean HR Coil Deals |
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There are enhanced signs of uncertainty in the prospects of Japanese integrated steelmakers' HR coil export deals for October-December shipments to South Korea. As a result, chances are negotiations with a major local customer (a steel reroller) will end in no settlement this week. It is two main factors that account for the uncertain prospects of Japano-Korean HR coil deals this time. For one thing, there are low-priced offers in China's HR coil exports to South Korea. Some Chinese steelmakers offered HR coil exports to South Korea at prices below US$500/ton FOB before China's national foundation anniversary. Also, on offer are lower prices by US$10-20/ton for December shipments, offers after China's national foundation anniversary and the subsequent holidays. For another thing, there is a possibility that a certain Japanese steelmaker has negotiated HR coil exports to South Korea at lower prices by an average US$20-30/ton than what other Japanese steelmakers have settled for Q4 shipments. No uniform price applies in Japanese HR coil exports to South Korea these days. Therefore, little wonder that one of Japanese integrated steelmakers has negotiated HR coil exports there at lower prices than what others have settled. But it is likely that negotiated export prices of Japanese HR coils translating into around US$600/ton C&F for December shipments will come under strong criticism as expensive. In South Korea, one of major steel rerollers is expected to voice stronger resistance to a price level of US$600/ton C&F in pending imports of Japanese HR coils for Q4 shipments. The discontented customer has taken a wait-and-see position on the negotiations with the Japanese steelmakers after the emergence of low-priced offers in Chinese HR coil exports to South Korea. Therefore, it is a matter of attention whether the Japanese steelmakers will end up renegotiating the existing supply contracts of their HR coil exports to South Korea for Q4 shipments, according to market sources. |
| last modified : Mon 19 Oct, 2009 [10:44] |
