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|Japanese Mills Maintain Stance of Markups of NO Sheets for June Shipment|
The Japanese mills are continuing a stance of price increase of non-oriented (NO) electrical steel sheets mainly for China for June shipment. An extent of markups by the Japanese mills is mostly $100 but a customer side resists so strongly accepting price increase. However, as the Japanese mills are in a state that the more they sell, the more they run up their deficits, they are insisting not to incorporate production into a rolling schedule as far as price increase is accepted and maintain a stance of markups.|
As present, prices of steel products for general use like hot-rolled (HR) steel coils are weakening. In particular, prices of HR coils are falling to such extent of the level of $540 CFR at which level the Indian and Chinese mills and so on are offering for Middle East and Korea. As a result, each customer of NO electrical sheets is insisting that there is no way to increase prices and rather is asking for price down.
In China, the major mills left all together their domestic prices of NO electrical sheets unchanged for May shipment. Anshan Iron & Steel left its prices of them unchanged for 2 months, and Baoshan Iron & Steel (Baosteel) also left its prices of them to high grade unchanged for 2 months. Wuhan Iron & Steel reduced its prices by 50 CNY (a little less than $8) for April shipment while it left its list prices unchanged for May shipment. Taiwan's CSC is setting out levelling off of its prices for June shipment.
Any mill already reaches its limit and is in a state of being no room to cut its prices. Under such circumstances, the mills might say to be forced to leave their prices unchanged. The Japanese mills are also in a state of being in deficit on NO electrical sheets, and they are in the environment that the more they increase quantity, the more they run up their deficits. Accordingly, they are placing priority on prices at the expense of quantity. If they give priority to prices against Japanese customers, such customers are seen to adopt locally made products at some future time. Nevertheless, they give priority to prices for the Japanese customers. A source is observing that the Japanese companies will accept price increase to some extent finally.
Meantime, the Chinese and Korean NO electrical sheet mills seem to be insisting on price increase in the export market. In case of for Vietnam, offer prices of the Japanese mills are said to have been increased by $50 or so from those for April shipment. Under competition of the mills of each country, the Japanese mills got orders. An extent of price increase by the Korean and Chinese mills can be seen to be bigger than that of the Japanese mills. Baosteel's markups are reported to have been $100.
|last modified : Wed 08 May, 2013 [12:08]|