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Negotiations on HR coils for Remote Regions Pass Peak for Aug. Shipt
In negotiations on hot-rolled (HR) steel coils for the remote regions like Middle East and Central and South America by the Japanese mills, prices begin to be settled at levelling off. The hardest part of negotiations is felt to be over. Meantime, Chinese products were inbound in the South American region like Peru and Chile, and HR coil prices in both countries are dropping by around $20. There is a possibility for such prices to have dipped below $500 on FOB basis.

In general, contracted prices in July have been maintained despite of being on a weak note in countries where Chinese products are not inbound. Cheap prices of Russia and Ukraine are in a state not to be found. As there is demand in its own way, prices are kept at $570-580 CFR in the Middle Eastern region. It is said that offers at cheap prices from European mills toward the summer holiday cannot be found. The price recovery of HR coils within the European region is said to be behind the backdrop of it.

It is said that sale at cheap prices by Indian mills cannot be also found at present. It is because blast furnace mills are seen to be moving to raise their domestic prices in that country.

In September, relining works of blast furnaces are commenced by Baoshan Iron & Steel of China and so on. Then, the balance of supply and demand in China is expected to be tightened more than at present. If export from China decreases, it is in the environment that there could be price recovery as it is the autumn season for demand to increase, so the Japanese mills are thought to challenge an increase in price again.
last modified : Wed 16 Jul, 2014 [09:46]
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