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|Contracts Of Loams/Tinplates For Southeast Asia Begins To Be Concluded For Next Qtr|
Negotiations on steel loams (tin mill black plates) and tinplates for Southeast Asia have begun to be concluded for shipment of next quarter (April - June) except for China. Seen from the cases of contracts being settled monthly, prices of loams for April/May shipment were mostly left unchanged but in June shipment, the cases that markups of $60 to 80 were accepted came out. As the European mills have made their contracts for shipment of half a year (January -June) for the remote areas like Middle East and Central and South America, their prices for April through June are to be no fluctuation. With this, as in case the Japanese mills increase their prices, such price difference from those of the European mills becomes large, customers are showing their reluctance on price increase, and their negotiations are said to be still proceeding with difficulty. |
In the Southeast area, prices of steel products for general use are increasing month by month. Partly due to this, prices of loams for June shipment have risen largely. As the Japanese mills had increased their prices monthly, they have mostly maintained their prices for April/May shipment in order to countervail incoming tinplates from China, Korea and so on. However, the cases that contracts were made with markups of $60 to 80 for June shipment compared with those for March shipment come out as customers have recognized the upward trend of the market.
Following price rise of loams, negotiations on tinplates in the Southeast Asia have also begun to be concluded with price increase. At present, there is a case of $30 increase from those for March shipment. Most customers are showing their attitude to accept no fluctuations in price for April/May shipments and increase in price for June shipment. Negotiations are still under proceeding, and a level of bid price seems to be markups of $30 in the lowest case.
Negotiations for the remote areas have not proceeded yet. However, cheap offers of loams and tinplates from Korea and China till now are disappearing. In case of Korea, the mills are seen to show a wait-and-see attitude because prices of hot coils of those material have not been decided yet.
Baoshan Iron & Steel (Baosteel) of China seems to notice its domestic prices of tinplates for May shipment in a day or so. In April shipment, the company was seen to increase its prices but maintained them flat It is said to be subtle whether the company moves to price up this time as it left unchanged prices of hot coils, cold sheets and so on for April shipment.
While, new hot coil production line of Meishan Iron & Steel, a subsidiary of Baosteel is scheduled to go into full swing as early as April. To that new line, the Japanese mills are strengthening interest from two aspects.
One is that the makers of so-called fake tinplates are using much quantity of hot coils produced by Meishan. Its quality of hot coils being produced by the new line is said to be improved tremendously. If it is so, quality of fake tinplates will be largely improved, and quality difference from real tinplates is likely to be reduced. Accordingly, fake tinplates are foreseen to erode the market of real tinplates once again. The other is that there is a possibility that supply and demand of hot coils is relaxed. Although at present, there are demands for loams and tinplates, it is largely owing to price increase of steel products for general use. It is because there is a risk that when supply and demand of hot coils is eased up, hot coil prices turn into downward, and prices of loams and so on are led to drop by them.
|last modified : Tue 27 Mar, 2012 [10:04]|