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Negotiations On Hot Coils For Remote Areas Settled At Levelling Off For Apr. Shipment
Negotiations on hot-rolled steel coils for the remote areas are proceeding to conclude contracts at $680 to 710 CFR for April shipment. The cases of unchanged prices from March shipment become the general tendency.

The environment of negotiations for April shipment almost has not changed from those for the previous month. It seems to the factors that although a mill side is offering its markups as prices of iron ore and coking coal, raw materials for a blast furnace are to drop, and supply and demand cannot be said to be tightened, and so on, the surroundings have not gotten prepared to insist on price increase.

In case of Central and South America, a Russian mill is said to have sold out at $690 to 695 for April shipment. Those prices are almost the same ones of the previous month, and in that area, as Sidor of Venezuela has still faced equipment troubles, it seems to have not participated in the export market yet. There seems to be few offers from China, POSCO of Korea and so on. However, the Chinese mills are aggressive on exporting cold-rolled and hot-dip galvanized steel sheets and so on. Therefore, the local rerolling mills are insisting on price down of hot coils of material to purchase from Japan in order to compete with the Chinese cold sheets and son on mentioning lower prices of them which becomes one of factors to curb price rise.

The price down of hot coils of the US market has not yet affected negotiations for the Central and South America area for the time being. The US prices of hot coils have continued to drop by a little under $10 every week even entering into March. As under actual demand being not so strong, the mills had continued price increase, and run out of gas, then, the market prices seem to have turned to price down, and the situation seems to be for such prices to continue to drop. However, offers at cheaper prices from the USA are said not to be found yet.

As the environment of negotiations, customers to request price down disappear, and there are partly the cases of offers at the level of $625 FOB but as such offers have not disturbed the market, negotiations are to become easier. However, it is not so easy to raise prices. Negotiations on hot coils for the remote areas are foreseen to start soon for May shipment. The mills of each country including Japan are forecasted to offer price increase, and in case of the Japanese mills, they will continue to insist on price up by $20 to 30, and are to intend to realize price rise gradually taking their time.
last modified : Thu 15 Mar, 2012 [10:14]
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