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GI Base Metals For SE Asia Contracted at $850 CFR For May Shipment
Japan's negotiations on base metals for galvanized iron (GI) sheets for Southeast Asia are proceeding for May shipment. Those prices seem to have exceeded $850 CFR. Prices of GI base metals for that area became $800 CFR for March shipment, and were raised by $20 to 30 for April shipment and further by $20 to 30 for May shipment due to strong demand. Accordingly, they are to have been raised by $50 in total in this quarter.

Competitors on GI base metals to the Japanese mills are the local re-rolling makers while prices of hot-rolled steel coils of its material became the level of $700 CFR in March, and they are under negotiation at $750 CFR for May shipment. Price difference between those of GI base metals and hot coils has been reasonably settled at $100, and if prices of hot coils are raised further for June shipment, those of GI base metals are also likely to be able to take aim at $900 CFR.

In the Southeast Asian area, the demand season of GI base metals meets May/June shipment before the rainy season. Consequently, both prices and quantities increase usually in this season. In case of this year, there are so many inquired quantities. In case of negotiations for May shipment, inquired quantities are almost 5 times of production capacity. Hence, the situation becomes that the Japanese mills are selecting and accepting orders in descending order according to price. Many orders seem to have been received from not only the Southeast Asian area but also Central and South America.

In the backdrop of increased inquiries, there seems to be the fact that rehabilitation demand for recovery from the massive floods in Thailand is included in them. Moreover, it contributes largely to them that POSCO of Korea has made little export negotiations. With this, inquiries have been received even from the Korean customers. Orders have been placed to Japan from Central and South America due to limited suppliers though it is uncertain whether the European mills are inactive. The price level to that area is $850 CFR of equivalent prices for Southeast Asia.

Among the Japanese mills, some are sharing processing equipments to produce steel loams (tin mill black plates) and GI base metals. Therefore, when demand for loams is strong, production of GI base metals is to be reduced. For that reason, GI base metals are not to be supplied sufficiently from Japan.
last modified : Thu 29 Mar, 2012 [15:17]
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