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|Japan to Maintain Current Wire Rod Prices for Asia for Next Qtr Shipt|
The Japanese blast furnace mills' export negotiations on steel wire rods for Asia are expected to go into full swing for shipments of the next quarter (January-March) as early as next week. The Japanese mills have a policy to proceed with negotiations at a stance to maintain the current price level.|
China Steel (CSC) of Taiwan set out its domestic prices of steel products for shipments of January and February, and of these, the company reduced its prices of steel bars and wire rods by NT$317 (a little over $10). As the company lowered its prices of them by NT$640 ($21) for December shipment, it is to cut its prices by a total of $30 in dollar volume.
In China, major blast furnace mills like Baoshan Iron & Steel left their domestic prices of wire rods unchanged for December shipment. Therefore, a request for a decrease in prices if any will not become large, the Japanese mills are observing. And, there is not big difference in a demand environment between this quarter and the next quarter in the Southeast Asian region. Accordingly, the Japanese mills are thinking that their insisting on levelling off of prices will be accepted.
By CSC's price decrease, the Japanese mills are to be affected for China and Taiwan. Most of the Japanese mills are likely to maintain levelling off of their offer prices. As material costs are reduced due to a price drop of iron ore, customers seem to request strongly a decrease in prices.
However, as the yen is continuing to depreciate, material costs are unlikely to fall so much. Under the circumstances, the mills are seen to make an effort to maintain the current price level explaining that an increase in prices of products was not fully accepted when material costs rose.
China's prices of ordinary steel wire rods are said to have become the level of $460 CFR. Although the Japanese blast furnace mills have already no desire to compete in the field, they can be said to be placed in a very harsh environment in the export market of ordinary steel wire rods.
|last modified : Mon 08 Dec, 2014 [10:11]|