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| HOME >> Topics List >> January, 2010 >> 15 (Fri) |
| Q1 Japano-Korean HR Coil Deals Agreed At Close To $600 FOB |
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Japan's integrated steelmakers are thought to have agreed with South Korea's steel rerollers on prices of close to US$600/ton FOB in the Japanese steelmakers' HR coil export negotiations with the Korean steel rerollers for shipments in the January-March quarter, it was learned Thursday. It is understood that the Korean steel rerollers have accepted what the Japanese steelmakers require on price in the wake of fast tightening supply-demand conditions for HR coils in East Asia. The Japanese steelmakers hope to reduce supply volumes if possible in their HR coil exports to the Korean steel rerollers for January-March shipments. But chances are the Japanese steelmakers will have to adjust what they provide for the Korean customers who hope to get increased supplies. With the deals settled for HR coil imports from Japan, the Korean steel rerollers will offer their CR sheet exports at US$740/ton FOB for March shipments in reaction to a tighter export market for CR sheets than for HR coils, according to information made available in Tokyo. The Korean steel rerollers first planned to raise the offer price of CR sheet exports by US$30 to US$680/ton FOB for February shipments and by US$20 to US$700/ton FOB for March shipments. Posco's equipment repairs In South Korea, integrated steelmaker Posco is scheduled to execute regular repairs of six hot strip mills at its works for 10-20 days each in the January-July period of this year. As a result, Posco's HR coil production is forecast to decrease by around 300,000 tpm in that period. Posco finds it necessary to slash domestic supplies of HR coils in addition to reduced HR coil production because of the hot strip mill repairs while providing HR coils or CR sheets for the company's overseas joint ventures in countries such as Vietnam and Mexico. Those joint ventures are on track to begin commercial operations in the immediate future. There are suggestions that electric steelmaker Dongbu Steel Co could take up alternative domestic supplies of HR coils to meet Posco's decreased HR coil production. But it is considered impossible so far for Dongbu Steel to provide HR coils of assured quality. As a result, it is likely that more domestic users in South Korea will depend on HR coil imports from the Japanese steelmakers. Chinese leeway for HR coil exports There are signs that China's various steelmakers are busy devoting themselves to domestic supplies of HR coils whereby they have little leeway for HR coil exports. For an indicator, Baosteel Co has yet to start negotiations on its new HR coil exports to South Korea. In this connection, it is a matter of attention where South Korea's pipe manufacturers will source the HR coil imports they need. |
| last modified : Wed 20 Jan, 2010 [10:57] |
