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| $100 Japanese Markup In No-GO Elec Sheet Exports To Japanese-Affiliated Users |
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Japanese integrated steelmakers have won a price increase of US$100/ton at long last in negotiations on their export deals of non-GO (grain oriented) electrical sheets with Japanese-affiliated consumer electronics manufacturers in Asian destinations, mainly in China, for January-March shipments. As a result, the Japanese steelmakers are expected to finish off all the negotiations shortly. The Japanese steelmakers offered a price increase of US$100-150/ton in the negotiations this time. Until now, the Japanese-affiliated consumer electronics manufacturers have become receptive of the price increase on offer in reaction to tight supply-demand conditions for non-GO electrical sheets in East Asia. By comparison, the Japanese steelmakers are supposed to negotiate their export deals of non-GO electrical sheets with local consumer electronics manufacturers in Asian destinations, mainly in China, for February-March shipments. The Japanese steelmakers achieved a price increase of US$30-50/ton to a level of close to US$800/ton FOB for January shipments. For February-March shipments, the Japanese steelmakers were first set to nail down a price level of US$800/ton FOB. But they admit a changed situation because China's Baosteel Co has opted to keep its domestic sales price unchanged of non-GO electrical sheets for February shipments. With various customers taking a wait-and-see position, the Japanese steelmakers favor holding back on hasty negotiations on their export deals of no-GO electrical sheets for February-March shipments. Baosteel has a domestic price increase in effect of Yn600/ton (US$88) of non-GO electrical sheets for January shipments. As a result, the current sales price after tax translates into beyond US$900/ton to what borders on US$1,000/ton, a fairly high price level that is believed to have induced Baosteel to let the asking price move sideways for February shipments. In China, Wuhan Iron & Steel Group Corp (Wisco) has yet to voice what price to apply in its domestic sales of non-GO electrical sheets for February shipments. But there is speculation that Wisco may keep the asking price unchanged as in the case of Baosteel. Given Baosteel's flat domestic price for February shipments, the Japanese steelmakers are contemplating taking time to negotiate their export deals of non-GO electrical sheets with local consumer electronics companies in Asian destinations for February-March shipments. What China's steelmakers put out as non-GO electrical sheets stands at a high level, but there are few signs of increased domestic stocks of non-GO electrical sheets, which the Japanese steelmakers speculate indicates strong local demand. Therefore, the Japanese steelmakers are in no position to hurry what they negotiate this time since exportable volumes are limited of non-GO electrical sheets from their works. Meanwhile, limited exports of non-GO electrical sheets by South Korea's Posco are partly held responsible for tight supply-demand conditions for non-GO electrical sheets in East Asia. In this connection, there is a possibility of less production than usual of non-GO electrical sheets at Posco's works due to regular repairs of equipment such as hot strip mills. For an indicator, there are even inquiries from South Korea's consumer electronics companies for imports of Japanese non-GO electrical sheets. |
| last modified : Mon 25 Jan, 2010 [10:44] |
