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| HOME >> Topics List >> January, 2010 >> 28 (Thu) |
| Hyundai Steel To Up Domestic Prices Of H-Beams, Bars |
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South Korea's Hyundai Steel Co is contemplating raising its domestic sales prices of H-beams and bars by W40,000/ton and W50,000/ton respectively from January 28 supply contracts for February shipments, according to information made available in Tokyo. The price increases translate into US$35/ton for H-beams and US$43/ton for bars at an exchange rate of US$1.00-W1,150. Hyundai Steel has a domestic price increase in effect of W30,000/ton (US$26) for January shipments of H-beams and bars. With another price increase for February shipments, it follows that what the company charges for H-beams will recover to W860,000/ton (US$748) before the company's price reduction twice last year. With rising prices of ferrous scrap, the company is thought to have reacted with price increases of its products. Until now, ferrous scrap prices are said to have advanced by as much as W100,000. As a result, it is likely that the company will opt to price up what it sells for March shipments as well. In South Korea, the lunar New Year holidays in February will bring a suspension of H-beam production at local steel mills for 10 days or so, leading to reduced domestic supplies of H-beams. Besides, there are prospects of a surge in domestic demand for H-beams and sheet piles in relation to the government's public works projects for waterway maintenance and improvements of the nation's four big rivers. As a result, there are forecasts that South Korea's domestic supply-demand conditions for materials such as H-beams and sheet piles will become fairly tight after the lunar New Year holidays. Aware of the domestic environment in South Korea, Japan's integrated steelmakers are considering offering prices of US$700/ton C&F or beyond in their deals of H-beam exports to South Korea for March shipments. Besides, they have an idea of struggling for a price level of US$700/ton FOB if possible. The Japanese steelmakers see an expansion of export demand for the H-beams they put out. In particular, H-beam inquiries from the Middle East are standing out. But the Japanese steelmakers admit transaction prices of H-beams at a level of US$650/ton C&F so far for delivery in the Middle East. As a result, they are holding back on offers of H-beam exports to the Middle East on the argument that the going prices still indicate a low level. Instead, they find it possible to negotiate far better terms of H-beam exports to Southeast Asia than to the Middle East. Meanwhile, China's various steelmakers are said to have opted for flat domestic prices of H-beams as to February shipments. In this connection, there is speculation that the central government has made tacit instructions whereby local steelmakers are required to keep H-beam prices unchanged despite an environment that permits an H-beam price increase. |
| last modified : Tue 02 Feb, 2010 [10:50] |
