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|Hot Coils For Korea Settled At Markups Of $20-30 By Chinese Mills|
With respect to negotiations on hot-rolled steel coils for Korea, some Chinese mills seem to have concluded their contracts at the markups of $20 to 30 for April shipment at first. The Japanese mills are still under negotiations with the re-rolling mills.|
Negotiations on hot coils for the Southeast Asian area are about to end, and contracts settled at the level crossed $700 CFR are increasing even depending on an area. Although steep price increase is difficult at a stretch, prices are edgingly rising even slightly month by month, and have followed the upward trend.
Under the circumstances, the Japanese mills seem to have been proceeding confidently with negotiations on hot coils for Korea for April shipment. As their goal is to raise their prices to the level of $750 CFR during next quarter, $700 CFR are to be expected for April shipment.
However, the Korean customers are keen on blocking price increase. Although there was price difference between the Chinese 1st and 2nd class mills, they had been offering price increase of $30 to 40, and most of their prices seemed to be settled at $620 to 650 CFR for March shipment and $640 to 670 CFR for April shipment. But those prices have not reached $700 yet. It is uncertain whether this is the reason or not, the customers are said to have shown their reluctance against price increase by the Japanese mills.
In Korea as well, Hyundai Steel and so on are said to have proceeded with negotiations in an attitude of virtual price increase by reducing the range of discount by 30,000 to 50,000 won ($27 to 45) for April shipment. Their virtual price increase was carried out by reduction of the discount rage for March shipment as well, and as result, there seemed to be the cases increased to 800,000 won ($714). The Japanese mills are doing their best to find the point of conclusion watching these moves.
Information that the Korean mills have started to prepare the antidumping suit against hot coils is spreading. In view of time, there are many cases that the Japanese mills settle forward their prices with the re-rolling mills. If is the case, concern on the antidumping is to increase in case that prices of the Japanese mills are cheaper than those of the Korean ones. To avoid such risk, their price increase is absolutely required to some extent. However, as the Japan-Korea Steel Dialogue is held on April 5 in reality, the antidumping issue will be discussed during the meeting, and such conflict will be resolved with words not to go to the suit case.
|last modified : Mon 19 Mar, 2012 [11:20]|