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| Japanese CR Sheet Exports Sell At $700 FOB Level In Asian Deals |
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Japan's integrated steelmakers have achieved a target price level of US$700/ton FOB in negotiated deals of their CR sheet exports to the rest of Asia, mainly to China, for January and February shipments. At present, their export deals of CR sheets are under negotiation for March shipments. Chances are the Japanese steelmakers will get prices of close to US$750/ton FOB for March shipments, depending on what prices China's major integrated steelmakers will apply in domestic sales of CR sheets for February shipments. Besides, the Japanese steelmakers are expected to seek a higher price level of US$800/ton FOB in the CR sheet exports they negotiate for April-June shipments to Asian destinations. For January shipments, China's major integrated steelmakers have separate domestic price increases in effect of CR sheets. The price increases are Yn550/ton (US$81) for products from Baosteel Co, Yn400/ton (US$59) for ones from Wuhan Iron & Steel Group Corp (Wisco), and Yn600-650/ton (US$88-96) for ones from Anshan Iron & Steel Group Corp (Ansteel). As a result, Baosteel's new CR sheet price translates into US$810/ton, and Wisco's and Ansteel's into a level of US$750/ton each. Also, China's domestic CR sheet market has already risen to a level of US$700/ton. In China, there is enhanced dependence on imported CR sheets because local manufacturing industries such as autos and consumer electronics face inadequate CR sheet supplies from domestic steel mills despite an upswing of CR sheet demand. In the case of South Korea's Posco, it is uncertain whether the company has started or put off negotiations on its new CR sheet exports to Asian destinations. It is understood that Posco has little leeway for CR sheet exports as domestic supply-demand conditions for CR sheets continue tight besides the company's in-house CR sheet requirements for derivative products. There is even speculation about a possibility that Posco's overseas subsidiaries find themselves in insufficient CR sheet supplies from the parent company. Also, a similar situation is reported for Taiwan's China Steel Corp as to its CR sheet supplies to China's southern coastal provinces. As matters now stand, supply-demand conditions for CR sheets are fairly tight across Asia. On their part, Japan's integrated steelmakers are laying the foundation for an increased price level of US$600/ton FOB in the HR coil exports they negotiate anew now that they have achieved a target price level of US$700/ton FOB for CR sheets. Still, the Japanese steelmakers admit dwindling leeway to allocate CR sheets for export sales. As a result, they are expected to select the customers in negotiating CR sheet exports for March shipments. As to pricing, they are set to watch Baosteel's domestic CR sheet price when it comes to Chinese deals for CR sheet exports. In this connection, there are forecasts that the Japanese steelmakers will get prices of close to US$750/ton FOB in their CR sheet exports for March shipment, depending on Baosteel's domestic CR sheet price for February shipments. For April-June shipments, it is likely that the Japanese steelmakers will target a higher price level of US$800/ton FOB in their CR sheet exports with close attention to the prospects of new import prices of blast furnace feed (iron ore and coking coal). |
| last modified : Thu 14 Jan, 2010 [11:04] |
